Question
Problem 10-07 What effect will a four-for-one stock split have on the following items found on a firm's financial statements? Earnings per share $5.00. Round
Problem 10-07
What effect will a four-for-one stock split have on the following items found on a firm's financial statements?
Earnings per share $5.00. Round your answer to the nearest cent.
| Initial amount | New amount | Effect |
| $5.00 | $ | -Select-increasedecreaseno changeItem 2 |
Total equity $10,000,000. Round your answer to the nearest dollar.
| Initial amount | New amount | Effect |
| $10,000,000 | $ | -Select-increasedecreaseno changeItem 4 |
Long-term debt $4,100,000. Round your answer to the nearest dollar.
| Initial amount | New amount | Effect |
| $4,100,000 | $ | -Select-increasedecreaseno changeItem 6 |
Additional paid-in capital $1,431,000. Round your answer to the nearest dollar.
| Initial amount | New amount | Effect |
| $1,431,000 | $ | -Select-increasedecreaseno changeItem 8 |
Number of shares outstanding 900,000. Round your answer to the nearest whole number.
| Initial amount | New amount | Effect |
| 900,000 | -Select-increasedecreaseno changeItem 10 |
Earnings $4,500,000. Round your answer to the nearest dollar.
| Initial amount | New amount | Effect |
| $4,500,000 | $ | -Select-increasedecreaseno changeItem 12 |
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Broadcasting Finance In Transition
Authors: Jay G. Blumler, T. J. Nossiter
1st Edition
0195050894, 978-0195050899
