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ABC has been very successful over the last few years. As a result, the price of its common stock has increased from $4.50 on January
ABC has been very successful over the last few years. As a result, the price of its common stock has increased from $4.50 on January 1, 2016 to $18.00 per share on December 31, 2021. Its current net worth statement is as follows
Common stock (2.0 million shares) - $37 million
Retained earnings - $33 million
total - $70 million
A) What changes would occur in the above statement of net worth after a 2 for 1 stock split?
B) If the 2021 earnings for were $1,575,000, what would EPS be before and after the stock split?
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