An entity has 10,000 shares issued and outstanding with a 100 par value. Statement in the book: If the shares are split up 5 to 1, the new capitalization would be 50,000 shares with a 20 par value. 1. Question: How to arrive at "50,000 shares with 20 par value" using the 5 to 1 share split up? give ur computation 2. An entity has 10,000 shares issued and outstanding with 100 par value. Statement in the book: If the shares are split down 5 to 1, the new capitalization would be 2,000 shares with a 500 par value. Question: Question: How to arrive at "2,000 shares with 500 par value" using the 5 to 1 share split up? give ur computati

An entity has 10,000 shares issued and outstanding with a 100 par value. Statement in the book: If the shares are split up 5 to 1, the new capitalization would be 50,000 shares with a 20 par value. 1. Question: How to arrive at "50,000 shares with 20 par value" using the 5 to 1 share split up? give ur computation 2. An entity has 10,000 shares issued and outstanding with 100 par value. Statement in the book: If the shares are split down 5 to 1, the new capitalization would be 2,000 shares with a 500 par value. Question: Question: How to arrive at "2,000 shares with 500 par value" using the 5 to 1 share split up? give ur computati

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter11: Venture Capital Valuation Methods

Section: Chapter Questions

Problem 1bM

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4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: c. How much would be the total shareholders’ equity after a 10% share dividend declaration? d. If the entity would declare a 1 for 5 share split, What would be the balance of retained earnings?
(b) The owners' equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) Capital Surplus Retained earnings Total shareholder's equity RM30,000 RM285,000 RM648,100 RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners' equity account for Rantuil Utilities Berhad.
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: e. If the entity would declare a 2 for 1 share split, How much would be the new par value?
4. A company has 500 shares with a price of JD 10 per share, and a net income available for common stocks of JD 1000. Required Find the P/E.
ed A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 300, find its fair share price after it repurchases 100 worth of shares: (round your answer to the nearest 0.01)
Stockton Mineral Operation, Incorporated (SMO), currently has 515,000 shares of stock outstanding that sell for $40 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. SMO has a five-for-three stock split? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. SMO has a 15 percent stock dividend? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. SMO has a 44.5 percent stock dividend? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. SMO has a 2-for-7 reverse stock split? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. New share price b. New share price c. New share price d. New share price
Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.
We have those information available to make a calculation. Number of shares: 200 Nominal value of each share: 100 TL Market price declared by the Stock Exchange: 5,00 TL Stock Exchange declaration: 1 lot denotes 100 shares. What is the market value of the shares we have.
2. Harmony Corporation declared share dividends of 1 share for every 5 shares owned on its 200,000 issued and outstanding shares with a par value of P50 per share. at the time of declaration, the market value of ordinary shares was P80 per share and P100 per share at the time the shares were issued. What amount should be charged to Retained Earnings account and credit liability accounts, respectively? Group of answer choices 2,000,000 and -0- 2,500,000 and 2,500,000 4,000,000 and -0- 4,000,000 and 4,000,000
Indicate whether the following statements are true or false. If the statementis false, explain why.b. If you own 100 shares in a company’s stock and the company’s stocksplits 2-for-1, then you will own 200 shares in the company followingthe split.
1. Using Problem 1, how much is the book value per ordinary share? * 2. Using Problem 1, in case RED Corporation is liquidated, how much would be the total amount to be received by an investor who holds 2,000 ordinary shares and 1,000 preference shares? * 3. Using Problem 1, how much is the book value per ordinary share assuming the preference shares are also participating? *
1. Using Problem 1 and assuming the preference shares are also participating, in case RED Corporation is liquidated, how much would be the total amount to be received by an investor who holds 2,400 ordinary shares and 500 preference shares? * 2. Using Problem 1, how much is the book value per ordinary share assuming the preference shares are non-cumulative and participating up to 12%? * 3. Using Problem 1 and assuming the preference shares are non-cumulative and participating up to 12%, in case RED Corporation is liquidated, how much would be the total amount to be received by an investor who holds 2,400 ordinary shares and 500 preference shares? * 4. How much would the total value of the three buildings be based on the above information? *