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Q.No.4. The Kuli Khan Company has the following shareholders' equity account: Common stock (Rs. 24 par value) Additional paid-in capital Retained earnings Total shareholders'

 

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Q.No.4. The Kuli Khan Company has the following shareholders' equity account: Common stock (Rs. 24 par value) Additional paid-in capital Retained earnings Total shareholders' equity The current market price of the stock is Rs. 180 per share. Rs. 6,000,000 4,800,000 25,200,000 Rs. 36,000,000 a. What will happen to this account and to the number of shares outstanding with (1) a 10 percent stock dividend? (2) a 2-for-1 stock split? b. In the absence of an informational or signaling effect, at what share price should the common stock sell after the 10 percent stock dividend?

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