Question
Assets Cash $20,000 AR $ 110,00 Inventory $120,000 Plant and Equipment $ 250,000 Total Assets $500,000 Liabilities and Equity AP $20,000 Long Term Debt $100,000
Assets
Cash
$20,000
AR
$ 110,00
Inventory
$120,000
Plant and Equipment
$ 250,000
Total Assets
$500,000
Liabilities and Equity
AP
$20,000
Long Term Debt
$100,000
Common Stock
( $ 8.00 PAR, 4000 shares outstanding)
$32,000
Additional Paid In Capital
$148,000
Retained Earnings
$500,000
A Firm has above balance sheet:
a. Construct a new Balance sheet showing the impact of a three for one split. If current market price of stock is $ 54, what is price after split ?
b. Construct a new a Balance sheet showing the impact of a 10% stock dividend. After stock dividend, what is new price of the common stock ?
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
