FINA 2201- The owners’ equity accounts for Overby International
1) The owners’ equity accounts for Overby International are shown here:Common stock ($1 par value)$45,000Capital surplus215,000Retained earnings710,000Total owners’ equity$970,000a. Assume the company’s stock currently sells for $24 per share and a stock dividend of 5 percent is declared.How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)New shares issued Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock$Capital surplusRetained earningsTotal owners’ equity$ b. Now assume that instead the company declares a stock dividend of 9 percent.How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)New shares issued Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)Common stock$Capital surplusRetained earningsTotal owners’ equity$2) The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 28,000 shares of stock outstanding.Market Value Balance SheetCash$111,000Fixed assets524,600Equity$635,600Total$635,600Total$635,600The company has declared a dividend of $.80 per share. The stock goes ex dividend tomorrow. Ignore all tax effects.What is the stock selling for today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price $ What will it sell for tomorrow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price $ What will the balance sheet look like after the dividends are paid? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)Cash$Fixed assetsEquity$Total$Total$
