One stockholder owned 550 shares on February 5 before the dividend. Compute the

Question

One stockholder owned 550 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder's shares immediately before and after the stock dividend of February 5.(Round your "Bock value per share" answers to 2 decimal places.) Compute the total market value of the investor's shows in part 2 as of February 5 and February 20. (Round your "Dividend per preferred share" answers to 2 decimal places.) Required information [The following information apples to the questions displayed below.] The stockholder equity of TVX Company at the beginning of the day on February 5 follows: One February 5 the directors decrees a 100 percentage stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's marked value is dollar 50 per shows on February 5 before the stock dividend. The stock's market value is February 45 per share on February 78

Explanation / Answer

Answer Before After Book Value per share 23.18 22.68 Total book value of shares 12749 12475 Total Market Value 27500 24750 Working Notes Before Dividend paid Book Value per share = Share holder equity/no. of shares outstanding = 1530000/66000 = $ 23.18 Total Book value of share holders =550*23.18 = $ 12749 After Dividend paid Total Dividend Paid = 0.5*66000 "= $ 33000 Book Value per share = Share holder equity/no. of shares outstanding = (1530000-33000)/66000 = $ 22.68 Total Book value of share holders =550*22.68 = $ 12475 Market Value of shares Before 50*550 =27500 After 45*550 =24750

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