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The Mega Inc. Company with the common equity accounts shown here Common stock ($1 par value) $ 406,000 Capital surplus 1,340,000 Retained earnings 3,427,000 Total

The Mega Inc. Company with the common equity accounts shown here Common stock ($1 par value) $ 406,000 Capital surplus 1,340,000 Retained earnings 3,427,000 Total owners equity $5,173,000

a) If Mega Inc. stock currently sells for $35 per share and a 15 percent stock dividend is declared. How many new shares will be distributed? Show how the equity accounts would change. b) Mega Inc. declares a four-for-one stock split. How many shares are outstanding after split? What is the new share Price? c) If Mega Inc. declared a 25 percent stock dividend. Show how the equity accounts would change. d) Mega Inc. declares a one-for-five reverse stock split. How many shares are outstanding After Split? What is the new share price?

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