Question
Peter & Paul Chocolatiers have the following equity status: Preferred Stock $500,000 Common Stock (500,000 shares at $4 par) $2,000,000 Paid-in Capital in excess of
- Peter & Paul Chocolatiers have the following equity status:
| Preferred Stock | $500,000 |
| Common Stock (500,000 shares at $4 par) | $2,000,000 |
| Paid-in Capital in excess of par | $200,000 |
| Retained Earnings | $700,000 |
| Total Stockholders equity | $3,400,000 |
2. What would be the change, if any, if the firm declares a 2-for-1 stock split? What if the firm declares a 6-for-1 stock split? What if there is a 1-for-4 reverse stock split?
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
