Exam 19: Dividends and Other Payouts

The Retail Outlet has 6,000 shares of stock outstanding and the current market value of the firm is $429,000.The company just announced a 2-for-1 stock split.What will be the market price per share after the split?

Robinson's has 15,000 shares of stock outstanding with a market price of $6 a share.What will be the market price per share if the firm does a 1-for-3 reverse stock split?

Share repurchases:

A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a:

Jensen's has a market value equal to its book value,excess cash of $500,other assets of $9,500,and equity worth $10,000.The firm has 250 shares of stock outstanding and net income of $1,400.What will be the stock price per share if the firm pays out its excess cash as a cash dividend?

Based on the concept of the clientele effect,which one of these combinations correctly aligns an investor group with its preferred type of stocks?

A(n)________ is an alternative method to cash dividends which is used to pay out a firm's earnings to shareholders in the form of a cash payment.

A ________ will increase the number of shares outstanding without affecting the book value of any of the owners' equity account values.