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ABC Company Balance Sheet December 31, 20xx Assets Liabilities and Equity Cash $10,000,000 Accounts Payable $20,000,000 Accounts Receivable 250,000,000 Long-term debt 400,000,000 Inventory 120,000,000 Common

ABC Company Balance Sheet December 31, 20xx

Assets

Liabilities and Equity

Cash

$10,000,000

Accounts Payable

$20,000,000

Accounts Receivable

250,000,000

Long-term debt

400,000,000

Inventory

120,000,000

Common Stock ($10 par, 1,000,000 outstanding)

10,000,000

Plant and Equipment

325,000,000

Paid-in capital

90,000,000

Retained Earnings

185,000,000

Total

$705,000,000

Total

$705,000,000

The current price of a stock is $58 per share.

Required:

  1. Construct a balance sheet after a two for one stock split. What will be the new price of the stock? (Problem 1 tab)
  2. Construct a balance sheet after a 5% stock dividend. What is the new price of the stock? (Problem 2 tab)
  3. Construct a balance sheet after a one for two reverse stock split. What is the new price of the stock? (Problem 3 tab)
  4. Construct a balance sheet after a $3 per share cash dividend. What is the total cash dividend? (Problem 4 tab)

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