Question: The pre-stock dividend common stockholders' equity statement for Cranked Coffee Company is as follows: Cranked Coffee Company Pre-Stock Dividend Common Stockholders' Equity Common stock ($7

 The pre-stock dividend common stockholders' equity statement for Cranked Coffee Company
is as follows: Cranked Coffee Company Pre-Stock Dividend Common Stockholders' Equity Common
stock ($7 par, 1,400,000 shares) Contributed capital in excess of par Retained

The pre-stock dividend common stockholders' equity statement for Cranked Coffee Company is as follows: Cranked Coffee Company Pre-Stock Dividend Common Stockholders' Equity Common stock ($7 par, 1,400,000 shares) Contributed capital in excess of par Retained earnings $9,800,000 $1,050,000 $3,500,000 $14,350,000 Total common stockholders' equity Suppose you own 100 shares of Cranked Coffee's stock. Cranked Coffee's stock is trading at a market per share, and the company recently declared a 7% stock dividend. You are worried about the dilution of your earnings, so you'd like to make some calculations to evaluate the impact of the stock dividend on your investment. Based on your calculations, complete the following table: price of $14 Cranked Coffee Company Post-Stock Dividend Common Stockholders' Equity Common stock Contributed capital in excess of par Retained earnings Total common stockholders' equity $14,350,000 It Cranked Coffee's pre-dividend earnings per share (EPS) was $2.10, then the post-distribution EPS will be , and the post-distribution market price of Cranked Coffee's shares should be per share After the distribution of the stock dividend, you would own 107 shares of Cranked Coffee's stock, and the value of your wealth will be: $1,960 O $1,400 0 $2,100 O $1,750 Suppose the state in which Cranked Coffee is registered levies a capital impairment law. What will be the maximum amount of dividends that Cranked Coffee can distribute if the capital impainment provisions define capital as the par value of the fire's common stock?(Hint: Use the pre-distribution data to answer this question.) $4,550,000 $13,300,000 esc 6

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