Question
The stockholders equity of TVX Company at the beginning of the day on February 5 follows: Common stock$20 par value, 150,000 shares authorized, 51,000 shares
The stockholders equity of TVX Company at the beginning of the day on February 5 follows:
Common stock$20 par value, 150,000 shares authorized, 51,000 shares issued and outstanding | $ | 1,020,000 | ||
Paid-in capital in excess of par value, common stock | 525,000 | |||
Retained earnings | 675,000 | |||
Total stockholders equity | $ | 2,220,000 | ||
On February 5, the directors declare a 18% stock dividend distributable on February 28 to the February 15 stockholders of record. The stocks market value is $47 per share on February 5 before the stock dividend. The stocks market value is $40 per share on February 28.
1. One stockholder owned 400 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholders shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 2 decimal places. Round "Total book value of shares" to the nearest whole dollar.)
Before | After | |
Book value per share | ||
Total book value of shares |
2. Compute the total market value of the investors shares in part 2 as of February 5 and February 28.
February 5 | February 28 | |
Total Market Value of Shares |
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