Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Stock split: Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock (100,000 shares at $2 par) Paid in capital in
Stock split: Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock (100,000 shares at $2 par) Paid in capital in excess of par Retained earnings Total stockholders' equity $ 400,000 200.000 200,000 800.000 $1,600,000 a. Indicate the change in par value and the number of shares outstanding if the firm declares a 2-for-1 stock split b. Indicate the change, in par value and the number of shares outstanding of the firm declares a 1-for-1% reverse stock split, c. indicate the change in par value and the number of shares outstanding if the firm declares a 3-for-1 stock split d. Indicate the change in par value and the number of shares outstanding of the firm declares a 6-for-1 stock split a a. The number of shares outstanding after a 2-for-1 stock split is shares. (Round to the nearest whole number) Preferred stock $ 400,000 Common stock (100,000 shares at $2 par) 200,000 Paid-in capital in excess of par 200,000 Retained earnings 800.000 Total stockholders' equity $1.600,000 a. Indicate the change in par value and the number of shares outstanding if the firm declares a 2-for-1 stock split b. Indicate the change, in par value and the number of shares outstanding of the firm declares a 1-for-1% reverse stock split c. Indicate the change in par value and the number of shares outstanding of the firm declares a 3-for-1 stock split. d. Indicate the change in par value and the number of shares outstanding if the firm declares a 6-for-1 stock split. .. Indicate the change in par value and the number of shares outstanding of the firm declares a 1-for-4 reverse stock split a. The number of shares outstanding after a 2-for-1 stock split is shares. (Round to the nearest whole number.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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