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The Klingon Fastener Company has the following shareholders' equity account: Common Stock ($8 par value) Additional Paid-in-Capital Retained Earnings Total Shareholders' Equity The current market
The Klingon Fastener Company has the following shareholders' equity account: Common Stock ($8 par value) Additional Paid-in-Capital Retained Earnings Total Shareholders' Equity The current market price of the stock is $58 per share. $ 2,000,000 1,600,000 8,400,000 $ 12,000,000 A. What will happen to this account and to the number of shares outstanding with (1) a 10 percent stock dividend? (2) a 4-for-1 stock split? (3) a 2-for-3 reverse stock split? B. In the absence of an informational or signaling effect, at what share price should the common stock sell after the 10 percent stock dividend
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