Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The condensed balance sheet of Wildhorse Corporation reports the following: WILDHORSE CORPORATION Balance Sheet (partial) Total assets Liabilities and shareholders' equity Total liabilities June 30,
The condensed balance sheet of Wildhorse Corporation reports the following: WILDHORSE CORPORATION Balance Sheet (partial) Total assets Liabilities and shareholders' equity Total liabilities June 30, 2024 $12,570,000 $4.945,000 Shareholders' equity Common shares, unlimited number authorized, 445,000 issued 2,670,000 Retained earnings 4.955.000 Total shareholders' equity 7,625,000 Total liabilities and shareholders equity $12.570,000 The market price of the common shares is currently $18 per share. Wildhorse wants to assess the impact of three possible alternatives on the corporation and its shareholders. The alternatives are: 1. Payment of a $1.47 per share cash dividend 2. 23 3. Distribution of a 5% stock dividend A 3-for-1 stock split For each alternative, determine the impact on (1) assets, (2) liabilities, (3) common shares, (4) retained earnings, (5) total shareholders' equity, and (6) number of shares. Cash Dividend (1) Assets $ (2) Liabilities $ Common (3) $ shares Retained (4) $ earnings $ Total (5) shareholders' equity (6) Number of shares Stock Dividend $ $ $ Stock Dividend 3-for-1 Stock Split $ $ $ $ Assume a Wildhorse shareholder currently owns 1.100 common shares at a cost of $17,600. What is the impact of each alternative for the shareholder, assuming that the shares' market price changes proportionately with the alternative? (Round intermediate per share calculations to 4 decimal places, eg. 15.1387 and final answers to O decimal places, e.g. 5,275.) Shares' total market price 1. Cash dividend $ 2. Stock dividend 3. Stock split $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started