Question
The company with the common equity accounts shown here has decided on a two-for-one stock split. The firms 67-cent-per-share cash dividend on the new (postsplit)
The company with the common equity accounts shown here has decided on a two-for-one stock split. The firms 67-cent-per-share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last years dividend on the presplit stock.
Common stock ($1 par value) $ 225,000
Capital surplus 1,070,000
Retained earnings 2,543,000
Total owners equity $ 3,838,000
a. What is the new par value of the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What was last years dividend per share?
A. | New Par Value | $ | per share |
B. | Dividends Per Share Last Year | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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