A which is the maximum dividend per share dps that

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a. Which is the maximum dividend per share (DPS) that the firm can pay? (Assume that legal capital includes all paid-in capital.)
b. If the firm has $160,000 in paid-in capital, what is the larger per-share dividend it can pay without borrowing?
c. Indicate the accounts and charges, if any, that will result if the firm pays the divi- dends indicated in parts a and b.
d. Indicate the effects of an $80,000 cash dividend on stockholder's equity.
P14-11 Stock dividend: Investor Sarah Warren currently holds 400 shares of Nutri-Foods. The firm has 40,000 shares outstanding. The firm most recently had earnings available for common stockholders of $80,000, and its stock has been selling for $22 per share. The firm intends to retain its earnings and pay 10% stock dividend. a. How much does the firm currently earn per share? b. What portion of the firm does Sarah currently own? c. What proportion of the firm will Sarah own after the stock dividend? Explain your answer. d. At what market price would you expect the stock to sell after the stock dividend?
New market price per share after dividend is $20.00 e. Discuss what effect, if any, the payment of stock dividends will have on Sarah's share of ownership and earnings of Nutri-Foods. ?????? ????? ??? ?ℎ??? ????? ????? ???????? =$880,000/44,000=$20.00
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P14-19 Ethics Problem Assume that you are the CFO of a company contemplating a stock repurchase next quarter. You know that there are several methods of reducing the current quarterly earnings, which may cause the stock price to fall prior to the announcement of the proposed stock purchase. What course of action would you recommend to the CEO?

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