Dividends and equity review
Using the information below, how would return on common equity be affected if a company issues 10,000 more shares of common stock for $5 ? Show your work. Net income = $85,000Beginning Stockholders Equity = $285,000Ending Stockholders Equity (if no new shares are issued) = $285,000Ending Stockholders' Equity (if 10,000 new shares are issued) = $335,000 If you were a stockholder in the above scenario, how would you feel about the company issuing more stock? I would support it. I would be against it. I would not be affected either way. If the company referenced above needed the additional $50,000 to implement its strategic plan, what other option could they look into besides issuing more stock? Match the type of stock to the definition. Authorized shares Total number of shares a corporation can sell Issued shares Total number of authorized shares a corporation has sold Outstanding shares Total number of shares issued and held outside of the corporation Treasury stock Total number of shares a corporation has issued and repurchased and will reissue at a later date. On March 30th, Goggle, Inc.'s board of directors met and declared a $1.15 per share dividend. On April 20th, the controller recorded the owner of each share of stock. On May 15th, each shareholder received their dividend payment via EFT. Match each date to the action described above. Date of declaration 3 Date or record 4 Payment date 5 Calculate the preferred stock dividend per share for each situation ABC, Inc. issued $2 preferred stock 2 ABC, Inc. issued $50 par value, 10% preferred stock 5 ABC, Inc. issued $100 par value stock with a 4% dividend rate 4 Calculate the dividend per share for each type of stock. Common Stock Dividend Per Share Preferred Stock Dividend Per Share German, Inc. has authorized 35,000 shares of common stock issued and outstanding. They also have 100 shares $60 par value, 4% of preferred stock authorized and outstanding. They have declared a total dividend of $24,740. 0.70 2.40 German, Inc. has authorized 35,000 shares of common stock and currently have 25,000 issued and outstanding. They have declared a total dividend of $50,000 2 0 Complete the sentences In accounting, debit means left and credit means right. What is the normal balance for each account? Debit Salary Expense Any Asset Cash Accounts Receivable Office Expense Credit Accounts Payable Any Liability Sales Service Revenue Capital Stock What is a journal? A form used to record changes in an individual account. An accounting form used to record business transactions in chronological order. A collection of all assets, liability and owners' equity accounts that details changes in the accounts. What does normal balance mean? The side of an account that decreases The side of the account that increases The side of the account that gets larger