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Written Assignment #3

# Written Assignment #3 - Dustin Taylor FIN-301 June 2011...

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Dustin Taylor FIN-301 June 2011 Term Written Assignment #3 Chapter 10 Problem #3 a. \$90 / 2 = \$45 b. before split - \$6 / \$9.50 = 63.16% after split - \$3 / \$4.75 = 63.16% Problem #4 a. Cash - \$28,000,000 – (\$1 x 2,000,000 shares) = \$26,000,000 Common stock - \$100,000,000 Additional paid-in capital - \$10,000,000 Retained earnings - \$62,000,000 – (\$1 x 2,000,000 shares) = \$60,000,000 b. Cash - \$28,000,000 Common stock - \$50 par x 2,100,000 shares = \$105,000,000 Additional paid-in capital - \$10,000,000 + \$5,000,000 = \$15,000,000 Retained earnings - \$62,000,000 – \$10,000,000 = \$52,000,000 c. Cash - \$28,000,000 Common stock - \$100 par x 1,000,000 shares = \$100,000,000 Additional paid-in capital - \$10,000,000 Retained earnings - \$62,000,000 Problem #5 Stock dividend: Common stock – Increased \$20,000 (\$1 par x 20,000 shares) Additional paid-in capital - Increased \$60,000 Retained earnings – Decreased \$80,000 (\$4 x 20,000 shares) Cash dividend: Common stock – Remains the same Additional paid-in capital –

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Written Assignment #3 - Dustin Taylor FIN-301 June 2011...

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