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25 -A company whose stock is selling for $45 has the following balance sheet: please provide formula and answer Assets $32,000 Liabilities $10,000 Common stock
25-A company whose stock is selling for $45 has the following balance sheet: please provide formula and answer
Assets $32,000 Liabilities $10,000
Common stock 6,000
($6 par; 1,000 shares issued)
Additional paid-in capital 2,000
Retained earnings 14,000
a. Construct a new balance sheet showing a 3 for 1 stock split. What is the new price for the stock?
b. What would be the balance sheet if the firm paid a 10 percent stock dividend (instead of the stock split)?
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