Question
Donaghue Company announced a 2-for-1 stock split on its common stock. before the announcement, there were 150,000 shares of $10 par common stock outstanding. Determine
Donaghue Company announced a 2-for-1 stock split on its common stock. before the announcement, there were 150,000 shares of $10 par common stock outstanding. Determine how many shares of common stock will be outstanding after the stock split. What will be the par value of each share? What effect does the stock split have on total shareholders equity?
_________shares of common stock outstanding after the split
the par value of each share after the split will be ________
What effect does the stock split have on toatl shareholders' equity
A. decreases total shareholders equity
B. no effect
C. increase
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started