Question
Stock split: FirmGrowth Industries' current stockholders' equity account is as follows: Preferred stock $ 400,000 Common stock (800,000 shares at $3 par) 2,400,000 Paid-in capital
Stock split: FirmGrowth Industries' current stockholders' equity account is as follows:
Preferred stock | $ 400,000 |
Common stock (800,000 shares at$3 par) | 2,400,000 |
Paid-in capital in excess of par | 200,000 |
Retained earnings | 800,000 |
Total stockholders' equity | $3,800,000 |
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 if 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 if the firm declares a 6-for-1 stock split.
e.Indicate the change in par value and the number of shares outstanding if 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.)
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