Question
ABC's capital structure is as follows: Common Stock ($4 par) $90 mil Paid-in capital in excess 300 mil Retained Earnings 700 mil Currently, the stock
ABC's capital structure is as follows:
Common Stock ($4 par) $90 mil
Paid-in capital in excess 300 mil
Retained Earnings 700 mil
Currently, the stock is selling at $260. If the firm does a 5 for 1 split, which of the following would be correct after the split?
-
Par value = $20
Number of shares = 112.5 mil
Stock price = $52
Par Value = $.80
Number of shares = 112.5 mil
Stock price = $52
Par value = $.80
Number of shares = 450 mil
Stock price = $52
Par value = $20
Number of shares = 112.5 mil
Stock price = $208
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Financial Statement Analysis
Authors: Charles H. Gibson
13th International Edition
1133189407, 9781133189404
