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Week 06 Problems Principles of Finance
Week 06 Problems Principles of Finance
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:
- Construct a balance sheet after a two for one stock split. What will be the new price of the stock? (Problem 1 tab)
- Construct a balance sheet after a 5% stock dividend. What is the new price of the stock? (Problem 2 tab)
- Construct a balance sheet after a one for two reverse stock split. What is the new price of the stock? (Problem 3 tab)
- Construct a balance sheet after a $3 per share cash dividend. What is the total cash dividend? (Problem 4 tab
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