For the company in Problem 18, show how the equity accounts will change if: (a) Hexagon declares

Question:

For the company in Problem 18, show how the equity accounts will change if:

(a) Hexagon declares a four-for-one stock split. How many shares are outstanding now?

What is the new par value per share?

(b) Hexagon declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share?

Problem 18,

The shareholder equity accounts for Hexagon International are shown here:

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:03 AM

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For the company in Problem 18, show how the equity accounts will change if: (a) Hexagon declares

Question:

Ordinary shares (1 par value) 10,000 Capital surplus 180,000 Retained earnings 586,500 Total owners' equity 776,500

Step by Step Answer:

ANSWER a Fourforone stock split In a fourforone stock split each existing share is split into four s...View the full answer

Corporate Finance

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