Question

At December 31, 2015, the records of Kozmetsky Corporation provided the following selected and incomplete data:
Common shares, no par value
Shares authorized, unlimited
Shares issued, ? ; issue price $ 10 per share
Net earnings for 2015, $ 4,800,000
Common shares account, $ 2,000,000
Dividends declared and paid during 2015, $ 2 per share
Retained earnings balance, January 1, 2015, $ 71,900,000
Required:
1. Complete the following tabulation: Shares issued, _________ . Shares outstanding, _________ .
2. EPS, $ _________ .
3. Total dividends paid on common shares during 2015, $ _________ .
4. Assume that the board of directors voted a 100 percent stock split (the number of shares will double). After the stock split, the average issue price per share will be $ ________ and the number of outstanding shares will be _________ .
5. Disregard the stock split assumed in (4). Assume instead that a 10 percent stock dividend was declared and issued when the market price of the common shares was $ 91. Explain how the shareholders’ equity will change.


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  • CreatedAugust 04, 2015
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