Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is taken from a Motley Fool article dated June 1 5 , 2 0 1 8 , concerning Aflac Inc. Quacking about a
The following is taken from a Motley Fool article dated June concerning Aflac Inc.
Quacking about a split.Supplementalinsurance giant Aflac is best known for the white duck it has as its spokesperson, but the insurance products it provides to workers in the US and Japan help millions get the coverage they need in areas that few insurance companies cover. Thats been a successful model, and the insurer has seen its share price rise substantially over the years. In February, Aflac announced that it would do a for split effective March putting it in the form of a stock dividend. CEO Daniel Amos celebrated the announcement, noting that this is the ninth split of the companys common stock since listing on the NYSE in and the first in years. Aflac pointed to improving liquidity as a key reason for the move.
Aflac Inc. common stock has a par value of $
What adjustments will it make to its balance sheet as a result of the stock split?
Select the statement below that is incorrect.
The company adds the par value of the stock distributed to the common stock account.
The amount of outstanding shares is doubled.
Earnings per share is also recomputed for all years presented in the income statement.
The company adds the par value of the stock distributed to retained earnings.
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