Week 06 Problems Principles of Finance
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Listed below is the current data for ABC Company:
ABC Company
Balance Sheet
December 31, 20xx
Assets | Liabilities and Equity | ||
Cash | $10,000,000 | Accounts Payable | $20,000,000 |
Accounts Receivable | 250,000,000 | Long-term debt | 400,000,000 |
Inventory | 120,000,000 | Common Stock ($10 par, 1,000,000 outstanding) | 10,000,000 |
Plant and Equipment | 325,000,000 | Paid-in capital | 90,000,000 |
Retained Earnings | 185,000,000 | ||
Total | $705,000,000 | Total | $705,000,000 |
The current price of a stock is $58 per share.
Required:
- Construct a balance sheet after a two for one stock split. What will be the new price of the stock? (Problem 1 tab)
- Construct a balance sheet after a 5% stock dividend. What is the new price of the stock? (Problem 2 tab)
- Construct a balance sheet after a one for two reverse stock split. What is the new price of the stock? (Problem 3 tab)
- Construct a balance sheet after a $3 per share cash dividend. What is the total cash dividend?
11 years ago
Solution
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