Chapter_18

# Chapter_18 - Chapter 18 Problems 1-24 Input boxes in tan...

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Chapter 18 Problems 1-24 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."

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Chapter 18 Question 1 Input Area: Dividend per share \$6.00 Tax rate 15% Price \$80 Output Area: After-tax Dividend \$5.10 Ex-dividend price \$74.90

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Chapter 18 Question 2 Input Area: Common stock \$10,000 Par value \$1 Capital surplus \$180,000 Retained earnings \$586,500 Total owners'Equity \$776,500 a. Stock price \$25 Stock dividend 10% b. Stock dividend 25% Output Area: a. New shares outstanding 11,000 New shares issued 1,000 Capital surplus on new shares \$24,000 Common stock \$11,000 Capital surplus \$204,000 Retained earnings \$561,500 \$776,500 b. New shares outstanding 12,500 New shares issued 2,500 Capital surplus on new shares \$60,000 Common stock \$12,500 Capital surplus \$240,000 Retained earnings \$524,000 \$776,500
Chapter 18 Question 3 Input Area: Common stock \$10,000 Par value \$1 Capital surplus \$180,000 Retained earnings \$586,500 Total owners'Equity \$776,500 Stock price \$25 a. Stock split 4 for 1 b. Stock split 1 for 5 Output Area: a. New shares outstanding 40,000 The accounts are unchanged except that par value is now \$0.25 b. New shares outstanding 2,000 The accounts are unchanged except that par value is now \$5.00

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Chapter 18 Question 4 Input Area: Shares outstanding 150,000 Stock price \$65.00 a. Stock split 5 for 3 b. Stock dividend percent 15.00% c. Stock dividend percent 42.50% d. Stock split (shares) 4 for 7 Output Area: a. Stock split \$39.00 b. Stock dividend \$56.52 c. Stock dividend \$45.61 d. Stock split \$113.75 e. a. New shares outstanding 250,000 b. New shares outstanding 172,500 c. New shares outstanding 213,750 d. New shares outstanding 85,714
Chapter 18 Question 5 Input Area: Shares outstanding 5,000 Dividend per share \$1.50 Cash \$20,000 Equity \$175,000 Fixed assets \$155,000 Total \$175,000 Total \$175,000 Output Area: \$35.00 \$33.50 The equity and cash accounts will decline by: \$7,500 Cash \$12,500 Equity \$167,500 Fixed assets \$155,000 Total \$167,500 Total \$167,500 Market Value Balance Sheet Price 0 Price X Market Value Balance Sheet

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Chapter 18 Question 6 Input Area: Repurchase \$4,025 Shares outstanding 5,000 Dividend per share \$1.50 Cash \$20,000 Equity \$175,000 Fixed assets \$155,000 Total \$175,000 Total \$175,000 Output Area: Repurchasing the shares will reduce shareholders' equity by \$4,025 Shares bought 115 New shares outstanding
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Chapter_18 - Chapter 18 Problems 1-24 Input boxes in tan...

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