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On October 31, the equity section of Crane AG consists of share capital-ordinary CHF540,000 and retained earnings CHF950,000. Crane is considering the following two
On October 31, the equity section of Crane AG consists of share capital-ordinary CHF540,000 and retained earnings CHF950,000. Crane is considering the following two courses of action: (1) declaring a 10% share dividend on the 54,000, CHF 10 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHFS per share. The current market price is CHF 12 per share. Prepare a tabular summary of the effects of the alternative actions on the components of equity outstanding shares, and par value per share.
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