A company whose stock is selling for $60 has the following balance sheet:

a) Construct a new balance sheet showing the effects of a 3-for-1 stock split. What is the new price of the stock?
b) Construct a new balance sheet showing the effects of a 10 percent stock dividend. What will be the approximate new price of the stock?

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Assets $30,000,000 Liabilities Preferred stock Common stock ($12 par; 100,000 shares outstanding) Paid-in capital Retained earnings $14,000,000 1,000,000 1,200,000 1,800,000 12,000,000