Assume that you own 1000 shares of Microsoft stock. If Microsoft performs a 3 for 1 stock split, how will this affect your number of shares in the company and your wealth in the company?
Answer to relevant QuestionsAt the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 ...Consider the following statement: “In order to maximize value, all firms should maintain a 30/70 debt to equity ratio”. Do you believe this statement is correct? Explain your rationale.The company with the common equity accounts shown here has declared a four-for-one stock split when the market value of its stock is $43 per share. The firm’s 75-cent per share cash dividend on the new (post split) shares ...Last year sales for Syvester’s Electrical Inc., was $3 million and were supported by $2 million investment in assets. The sales produced a net income of $460,000.The company had fixed assets of $900,000 Account payable of ...Carl had the following transactions for 2012:Salary: $55,000Damage award (compensatory) for city bus accident: $20,000Loss on sale of stock investment: $4,500Loan from father to purchase auto: $10,000Alimony paid to ex-wife: ...
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