HOLMES EQUITY PROBLEM Each Question Worth 3 Paints Holmes Inc. has the following items in their current balance s heet: Common Stock 1,000,000 shares authorized, 200,000 issued 800,000 Capital Surplus Treasury Stock on Common 50,000 shares Cumulative Preferred Stock 5,000,000 authorized S6,000,000 S4,000,000 1396] S50 par $6,000,000 S40,000,000 Retained Earnings Holmes Inc. wishes to announce a total cash dividend of $10,000,000. How is this dividend to be split between the common and preferred stockholders? Show dollar values. 2 What is the dividend payment per share for the preferred and the common shares outstanding? 3. Suppose Holmes Inc. was two years in the arrears in paying dividends to the preferred stockholders, what is the dollar amount of the preferred and common shareholder dividends? . How many Holmes Inc. common stock shares are outstanding? 5. Could Holmes Inc. announce a 5 for 1 stock split on common stock? 6. Could Holmes Inc. offer a 4 for 1 stock split on the preferred shares? 7. If Holmes Inc. were to provide for a 20% common stock dividend when the market price of the common stock was S30 per share then what would be the journal entry to record the stock dividend? 8. Using the equity portion of the Holmes Inc. balance sheet above, determine the amount of the total equity in Holmes Inc.? 9. If Holmes Inc. announced a 4 for 1 reverse stock split on common stock what would the new par value per share be