The owners' equity accounts for Buel Industries include common stock of $16,000 with a $1 par value, capital surplus of $174,000, and retained earnings of $568,500. How many shares will be outstanding and what will be the par value per share if the firm declares a 2-for-5 reverse stock split? A. 5,200; $3.33 B. 5,333; $3.33 C. 40,000; $0.40 D. 6,400; $2.50
The Turtle Cave currently has 160,000 shares of stock outstanding that sell for $67.20 per share. Assume no market imperfections or tax effects exist. What will be the new share price if the firm declares a stock dividend of 10 percent? A. $61.09 B. $74.67 C. $60.48 D. $73.92
On July 9, you purchased 750 shares of Blue Water stock for $32 a share. On August 4, you sold 150 shares of this stock for $33 a share. You sold an additional 100 shares on August 14 at a price of $34.50 a share. The company declared a dividend of $.76 per share on August 3 to holders of record as of Monday, August 17. This dividend is payable on September 15. How much dividend income will you receive on September 15? A. $380 B. $570 C. $456 D. $494
Grocery Express stock is selling for $66 a share. A three-month, $60 call on this stock is priced at $7.92. Risk-free assets are currently returning .2 percent per month. What is the price of a three-month put on Grocery Express stock with a strike price of $60? A. $1.56 B. $2.33 C. $1.91 D. $2.78
Della's Pools has 36,000 shares of stock outstanding with a par value of $1 per share and a market price of $26 a share. The firm just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split? A. 54,000 shares B. 36,000 shares C. 60,000 shares D. 21,600 shares
According to put-call parity, the present value of the exercise price is equal to the: A. Stock price minus the put premium minus the call premium. B. Stock price plus the call premium minus the put premium. C. Put premium plus the call premium minus the stock price. D. Stock price plus the put premium minus the call premium.