The shareholders’ equity section of the consolidated balance sheet of Wilson Industries appeared as follows at the beginning of the year:

The following events occurred sequentially during the year:
1. A 2-for-1 forward stock split was executed.
2. Aten percent stock dividend was distributed when the Wilson share price was \($20\) per share.
3. Treasury stock valued at \($3,000,000\) was repurchased when the Wilson share price was \($15\) per share.
Required
1. How many Class A common shares are outstanding following the above events?
2. What is the par value per share of the Class A common stock following the above events?
3. Identify the financial effects associated with the above three share transactions.
4. Calculate the total value of shareholders’ equity following the above events.
5. How is the capital market likely to react to the forward stock split, the stock dividend, and the treasury stock purchase? Why?

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Shareholders' Equity Class A common stock, $.01 par value; 20,000,000 shares authorized; 6,100,000 shares issued. Additional paid-in-capital.. Retained earnings Currency translation adjustment Total equity... $ 61,000 118,127,000 14,270,000 (2,412,000) $130,046,000