Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13.Stock Dividends: The owners equity accounts for Quadrangle International are shown here: Common stock ($1 par value) Capital surplus Retained earnings Total owners equity $

13.Stock Dividends: The owners equity accounts for Quadrangle International are shown here:
Common stock ($1 par value) Capital surplus
Retained earnings
Total owners equity
$ 20,000 195,000 537,400
$752,400
a) If Quadrangle stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
b) If Quadrangle declared a 25 percent stock dividend, how would the accounts change?
14.Stock Splits: For the company in Problem 13, show how the equity accounts will change if:
a) Quadrangle declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share?
b) Quadrangle declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share?
all the question with Ex..
image text in transcribed
13. Stock Dividends: The owners' equity accounts for Quadrangle International are shown here: a) If Quadrangle stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. b) If Quadrangle declared a 25 percent stock dividend, how would the accounts change? 14. Stock Splits: For the company in Problem 13, show how the equity accounts will change if: a) Quadrangle declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share? b) Quadrangle declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions