Phileo Bhd. has a stockholders' equity account as shown below. Alice holds 500 ordinary shares of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Phileo Bhd. has a stockholders' equity account as shown below. Alice holds 500 ordinary shares of Phileo which currently sells for RM20 per share in 2008. RM Preferred shares Ordinary shares (2,000,000 shares @ RM1 par) Paid-in-capital Retained earnings Total stockholders' equity 500,000 2,000,000 10,000,000 11,600,000 RM24,100,000 (i) Compute the maximum dividend per share that Phileo can pay? (Assume capital includes all paid-in capital) (ii) Show the effects on the number of shares outstanding, par value and stock price if 2 for 1 stock split of the common stock take place. (iii) Show the effects on the number of shares outstanding, par value and stock price if stock dividend of 5% on the common stock take place. (iv) Determine the number of shares and proportion of ownership that Alice own after the stock split and stock dividend at part (ii) & (iii) above. Phileo Bhd. has a stockholders' equity account as shown below. Alice holds 500 ordinary shares of Phileo which currently sells for RM20 per share in 2008. RM Preferred shares Ordinary shares (2,000,000 shares @ RM1 par) Paid-in-capital Retained earnings Total stockholders' equity 500,000 2,000,000 10,000,000 11,600,000 RM24,100,000 (i) Compute the maximum dividend per share that Phileo can pay? (Assume capital includes all paid-in capital) (ii) Show the effects on the number of shares outstanding, par value and stock price if 2 for 1 stock split of the common stock take place. (iii) Show the effects on the number of shares outstanding, par value and stock price if stock dividend of 5% on the common stock take place. (iv) Determine the number of shares and proportion of ownership that Alice own after the stock split and stock dividend at part (ii) & (iii) above.
Expert Answer:
Answer rating: 100% (QA)
i To compute the maximum dividend per share that Phileo can pay we need to use the formula for divid... View the full answer
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
Posted Date:
Students also viewed these accounting questions
-
5.Consider a Blazer that is advertised at a monthly payment of $1714 for 5 year with 8.88%. What is the APR (to the nearest tenth of a percent)? 7.You want to purchase a computer that has a price of...
-
The shareholders equity section of Gaines Industriess balance sheet appeared as follows at December 31, 2018: During 2019, the following chronological transactions were recorded: 1. Gaines issued...
-
A surviving spouse with one dependent child has a gross income of 6 8 , 1 7 0 per year. If 3 , 0 0 0 is withheld from the taxpayers wages for federal income taxes, what is the amount of the taxpayers...
-
Prove that, the area of the traverse is equal to the algebraic sum of the products of the total latitude of each point and algebraic sum of the departures of the lines meeting at that point.
-
In 2008, Delta had more customer complaints, such as late flights and mishandled baggage, than any other major carrier. If you were an operations manager at Delta, how might you use MBO to solve...
-
This information is for Belleview Company for the year ended December 31, 2014. Cash received from revenues from customers ......$600,000 Cash received for issuance of common stock ..... 280,000 Cash...
-
The pipe lies in the horizontal plane. If it is subjected to a vertical force \(\mathbf{P}\) at its end, determine the strain energy due to bending and torsion. Express the results in terms of the...
-
The SEC is trying to get companies to notify the investment community more quickly when a material change will affect their forthcoming financial results. In what sense might a financial manager be...
-
Angela Channing, owner of Eagle Crest breweries, owns four breweries located throughout California and Oregon. Each brewery is run as an independent business which allows the manager of that brewery...
-
One way to see whether this procedure will be successful is to split the original data set into two subsets: one subset for estimation and one subset for validation. A regression equation is...
-
Raffy deposited $5000 in an investment account for 3 months. The account paid simple interest at a rate of 2.4 percent. What is the future value of his investment?
-
Which of the following approaches bases the measurement of performance on an array of quantitative and qualitative factors instead of a single quantitative measure in the organization, such as...
-
The process of measuring a firms performance against that of the top performers, usually in the same industry, is known as __________. A. competitive positioning B. performance measurement C....
-
Diversification allows a firm to __________. A. concentrate its efforts on a single business B. use its resources more effectively C. create excess resources D. all of the above
-
Benchmarks should be __________. A. broad, not specific B. associated with the strategys success C. outside the firms control D. all of the above
-
Sources of published information for strategic control available to the public include all of the following except __________. A. the Wall Street Journal B. Consumer Reports C. PIMS data D. many...
-
Briefly describe ONE purpose of the address in the excerpt. (b) Briefly describe ONE immediate historical development illustrated by the address in the excerpt. (c) Briefly explain ONE way the...
-
A company produces earbuds. The revenue from the sale of x units of these earbuds is R = 8x. The cost to produce x units of earbuds is C = 3x + 1500. In what interval will the company at least break...
-
Presented below is the adjusted trial balance of Kelly Corporation at December 31, 2008. Additional information: 1. Net loss for the year was $2,500. 2. No dividends were declared during 2008....
-
On July 1, 2008, Ingalls Company purchased $2,000,000 of Wilder Companys 8% bonds, due on July 1, 2015. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for...
-
Presented below is information related to Dino Radja Company. Instructions Compute the ending inventory for Dino Radja Company for 2005 through 2010 using the dollar-value LIFOmethod. Ending...
-
Does statelessness exist in wealthy countries such as the United States? How does the status of the "Dreamers" (people who entered the United States illegally as young children) compare with that of...
-
How does political organization relate to social differentiation?
-
What are stratified societies and what kinds of social systems are they identified with?
Study smarter with the SolutionInn App