ACCOUNTING

ACCOUNTING



Authors

IntroductionWhat is the legal capital of Lauer Company present?According to the law of capital is the value of a company's outstanding equity component. worth it kept the company's overall accounting Ledger and was forced to be utilized for dividends or other distribution. The amount of legal capital is established in the par value of supply when it is handed out in the open exchange supply. No par value relative to the true market value of the cost of supply or supply changes that are bought and traded between investors. Legal capital at par worth of key items related to equity investments.If Lauer rer'erse undertakes the stock split. What are the legal capital of the company following the split?The par worth of supply is changed to ensure investors are not being traded to the unique business supply prices. When proposing a major public (IPO) is broadcast, the company had to strengthen its stock worth par. This par worth handing represented the minimum cost paid by investors, then companies will notice the total cost as the legal capital par with its accounting Ledger. This allowed the business to sustain rudimentary accounting standards unregulated securities market for common stock.According to the law of capital has almost become a primitive stock investment tool in the enterprise world. Most common stock is now handed out to the par value of $ 0.01 or no par value at all.How many common shares are outstanding and what is the par value after the split?When a supply appreciates substantially, the corporation is sometimes announce a stock split, which is much smaller market value of the supply, and therefore, we hope to tempt more investors to buy stocks. The divide ratio is usually 2:01, that is, 2 shares of supply now replace each share of supply, but the ratio can be 3:01, 4:01, 5:03 or anything. If a shareholder had 100 parts supply trading at $ 80 per share, he has 200 shares selling at $ 40 per share after a 2:01 split.If Lauer's approach is successful, what should happen to the selling price of its common stock following the split?Authorized parts are the parts that are authorized by the vessel for hire when the company was formed. Hand out parts are authorized stock that is traded among investors. Unmissed issued shares and shares make up all authorized stock. Spectacular supply will supply that is counted by investors. All remaining stock is handed out, but sometimes a company will buy back its own supply, which then becomes treasury stock, which reduces the number of shares in the show.Authorized shares = shares issued (sold to investors) Un-issued shareshand out portions = Outstanding Stock (held by investors) Treasury supply (stock got back to the company).Determine the amount of dividends each class of stock will receive given the following assumptions:L. Prefened stock is not cumulative.2. Prefened stock is cumulative (one year in arrears).3. Preferred stock is cumulative (two years in arrears).B. What is the dividend per share for prelened ...