Question: help me correct section D, please. I'll make sure give you thumbs up Health Systemis inc is considering a 15 percent stock dividend. The capital

help me correct section D, please. I'll make sure give you thumbs up

help me correct section D, please. I'll make sure give you thumbs

up Health Systemis inc is considering a 15 percent stock dividend. The

Health Systemis inc is considering a 15 percent stock dividend. The capital accounts are as follows: "The increase in capital in excess of par as a result of a stock dividend is equal to the shares created times (Market price - Par value). The company's stock is selling for $30 per share. The company had total eamings of $12,500,000 with 5,000,000 shares outstanding and eamings per share were $250. The firm has a PlE ratio of 12 Q. What adjustments would have to be made to the capital accounts for a 15 percent stock dividend? Show the new capital accounts. (Do not round Intermedlate calculetlons. Input your answers In dollars, not milllons (e.g.$1,230,000).) b. What a djustments would be made to EPS and the stock price? (Assume the PIE ratio remains constant) (Do not round Intermedlate celedetenens and round your enswers to 2 decimal ploces.) c. How many shares would an investor have if he or she originally ha d iop: ido hot roun dintermedilere calculations ond round your. enswer to the neorest whole share.) What is the investor's total investment worth before and after the stock dividend if the P/E ratio remains constant? (Do not round ntermedlate colculations and round your answers to the nearest whole dollar.); Answer is complete but not entirely correct. e. Assume Mr. Heart, the president of Health Systems, wishes to benefit stockholders by keeping the cash dividend at a previous level of $1.10 in spite of the fact that the stockholders now have 15 percent more shares. Because the cash dividend is not reduced, the stock price is assumed to remain at $30. What is an investor's total investment worth after the stock dividend if he/she had 100 shares before the stock dividend? Answer is complete and correct. Total investment . Under the scenario described in part e, is the investor better off? 9. As a final question, what is the dividend yield on this stock under the scenanio described in part e? (Input your answer as a percent rounded to 2 decimal pleces.) Answer is complete and correct

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