Green Day Co Case Study
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Green Day Co has 400,000 C/S $10 par value shares outstanding. Company declared a 5% stock dividend when the market price of stock = $65/shareJ/E – Date of declaration20,000 shares x $65 = $ 1,300,000R/E 1,300,000 C/S div distributable APIC 1,100,000J/E — DATE OF ISSUANCEC/S Div Disttributable 200,000 C/S 200,000Note: The par value goes in c/s div distributableGreen Day Co has 400,000 C/S $10 par value shares outstanding. Company declared a 100% stock dividend when the market price of stock = $65/shareJ/E – Date of declarationR/E 1,300,000 C/S div distributable APIC 1,100,00040000 shares of c/s outstanding, p/s div= $5,000 AND NET i..(pic*)EPS = (Net Income – P/S Dividends) / weighted avg c/s outstanding “wacso”————————–Warrants can be tradedDUE HW DUE CH16 @ 5pmEvans Corp stock is traded on NASDAQ; Bonds have a readily determinable FMV. Company issued 10,000 units of lump security (1$500 par, 12% bond + 10 shares at c/s each)Bond=par $880 x 10,000= $8,800,000ProportionalFMV PROPORTION PROCEED ALLOCATION
Bonds $500X$1=$500 500/900=56% $4,888,889C/S $40X10shares=400 400/900= 44% $3,911,111 $8,800,000Cash 8800000Discount b/p 111111 b/p 5000000 OR 3? C/S 500,000 P/C 3411111check12:20IncrementalCash 8,800,000 b/p 5000000 c/s500000 p/c3300000