Question
The company with the common equity accounts shown here has declared a 5-for-one stock split when the market value of its stock is $39 per
The company with the common equity accounts shown here has declared a 5-for-one stock split when the market value of its stock is $39 per share. The firms 60-cent per share cash dividend on the new (postsplit) shares represents an increase of 15 percent over last years dividend on the presplit stock.
Common stock ($1 par value) $ 445,000
Capital surplus 858,000
Retained earnings 3,840,800
Total owner's equity $ 5,143,800
What is the new par value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
New par value $_________ per share
What was last year's dividend per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Dividend Per share______________
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