Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Would you please provide an Excel Spreadsheet formula with calculation. Thanks Stock dividend-Investor Personal Finance Problem Security Data Company has outstanding 30,000 shares of common

Would you please provide an Excel Spreadsheet formula with calculation. Thanks

image text in transcribed
Stock dividend-Investor Personal Finance Problem Security Data Company has outstanding 30,000 shares of common stock currently selling at $42 per share, The firm most recently had earnings available for common stockholders of $142,000, but it has decided to retain these funds and s considering a 15% stock dividend in lieu of a cash dividend. a. Determine the firm's current earnings per share b. If Sam Waller currently owns 400 shares of the firm's stock, determine his proportion of ownership currently and under the proposed 15% stock dividend plan. c. Calculate the market price per share under the 15% stock dividend plan. d. For the proposed 15% stock dividend plan, calculate the earnings per share after payment of the stock dividend. e. What is the value of Sam's holdings under the 15% stock dividend plan? f. Should Sam have any preference with respect to the proposed stock dividend? a. The firm's current earnings per share is $ (Round to the nearest cent ) b. If Sam currently owns 400 shares of the firm's stock, the proportion of the firm Sam currently owns %. (Round to two decimal places ) The proportion of the firm Sam will own after the 15% stock dividend is %. (Round to two decimal places ) c. If Security pays a 15% stock dividend, the market price of stock after the dividend is S (Round to the nearest cent.) d. The firm's earnings per share after payment of the stock dividend is $ (Round to the nearest cent) e. The value of Sam's holdings before the stock dividend is $ (Round to the nearest dollar) The value of Sam's holdings after the stock dividend is $ (Round to the nearest dollar ) f. Should Sam have any preference with respect to the proposed stock dividend plan? (Select the best answer below.) O A. Sam should prefer a 15% stock dividend because his total value will be significantly more. O B. Sam should have no preference because his total value will remain essentially the same. O C. Sam should prefer a 15% stock dividend because he will have more shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

5th Edition

126078035X, 978-1260780352

More Books

Students also viewed these Accounting questions