Common Stock ($1 par value) $30,000

Capital surplus 185,000

Retained Earnings 627,500

Total Owners Equity 842,500

A.) If Hexagon stock currently sells for $37 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

B.) If Hexagon declared a 25 percent stock dividend, how would the accounts change?

Stock Splits

Show how the equity accounts will change if:

a.) Hexagon declares a four for four stock split. How many shares are outstanding now? What is the par valu per share?

b.) Hexagon declares a four for five reverse split. How many shares are outstanding now? What is the new par value per share?