finance hw

below is the homework and attached is an exampled plus the spreadsheet the hw answers go into

Complete the following problems. For assistance, you may want to refer to these examples: Week 06 Example Problems.doc

Download the Week 06 Excel Problems spreadsheetto use in completing your problems. There are four separate worksheets within the workbook, one for each problem. Select the proper tab to complete each assignment. You will need to complete all yellow shaded cells.

Listed below is the current data for ABC Company:

ABC Company
Balance Sheet
December 31, 20xx

Assets

Liabilities and Equity

Cash

$10,000,000

Accounts Payable

$20,000,000

Accounts Receivable

250,000,000

Long-term debt

400,000,000

Inventory

120,000,000

Common Stock ($10 par, 1,000,000 outstanding)

10,000,000

Plant and Equipment

325,000,000

Paid-in capital

90,000,000

Retained Earnings

185,000,000

Total

$705,000,000

Total

$705,000,000

The current price of a stock is $58 per share.

Required:

  1. Construct a balance sheet after a two for one stock split. What will be the new price of the stock? (Problem 1 tab)
  2. Construct a balance sheet after a 5% stock dividend. What is the new price of the stock? (Problem 2 tab)
  3. Construct a balance sheet after a one for two reverse stock split. What is the new price of the stock? (Problem 3 tab)
  4. Construct a balance sheet after a $3 per share cash dividend. What is the total cash dividend? (Problem 4 tab)

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