1. 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
2. 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. $74.67
B. $61.09
C. $60.48
D. $73.92
3. 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. $570
B. $380
C. $494
D. $456