The capital accounts of Gripit Company as of yearend 2021 are as follows: Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained Earnings - 3,135,000 The company's ordinary shares are currently selling at P20. 1. How much is the net effect of a 10% share dividend to the company's reserves? 2. How much is the net effect of a 30% share dividend to the company's total shareholders' equity? 3. How much is the net effect of a 4-for-1 share split to the company's legal capital?
The capital accounts of Gripit Company as of yearend 2021 are as follows: Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained Earnings - 3,135,000 The company's ordinary shares are currently selling at P20. 1. How much is the net effect of a 10% share dividend to the company's reserves? 2. How much is the net effect of a 30% share dividend to the company's total shareholders' equity? 3. How much is the net effect of a 4-for-1 share split to the company's legal capital?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...
Related questions
Question
The capital accounts of Gripit Company as of yearend 2021 are as follows:
Ordinary Share Capital (P10 par) - 500,000
Share Premium - 250,000
Retained Earnings - 3,135,000
The company's ordinary shares are currently selling at P20.
1. How much is the net effect of a 10% share dividend to the company's reserves?
2. How much is the net effect of a 30% share dividend to the company's total shareholders' equity?
3. How much is the net effect of a 4-for-1 share split to the company's legal capital?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning