Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.A firm's stock sells for $200 a share. What will be the price after a (1) two-for-one split (2) four-for-one split (3) one-for-two reverse split?

1.A firm's stock sells for $200 a share. What will be the price after a

(1) two-for-one split

(2) four-for-one split

(3) one-for-two reverse split?

2.

A firm's balance sheet has the following entries:
Cash

$ 30,000,000

Total assets

100,000,000

Common stock (10,000,000 shares outstanding, $2 par)

20,000,000

Additional paid-in capital

5,000,000

Retained earnings

35,000,000

3.

What will be each of these balance sheet entries after a
(1) $2 a share cash dividend
(2) four-for-one split
(3) 5 percent stock dividend (current price of the stock is $20)?

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

Recommended Textbook for

Strategy For Personal Finance

Authors: Larry R. Lang

4th Edition

007036317X, 9780070363175

More Books

Students also viewed these Finance questions

Question

Discuss the company's global marketing.

Answered: 1 week ago