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:

 

  1. Construct a balance sheet after a two for one stock split. What will be the new price of the stock? (Problem 1 tab)
  2. Construct a balance sheet after a 5% stock dividend. What is the new price of the stock? (Problem 2 tab)
  3. Construct a balance sheet after a one for two reverse stock split. What is the new price of the stock? (Problem 3 tab)
  4. Construct a balance sheet after a $3 per share cash dividend. What is the total cash dividend? (Problem 4 tab
  • Posted: 6 years ago
  • Due: 
  • Budget: $20
Answers 2

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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 …

  • 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 …