Question
The owners' equity accounts for Freya International are shown here. Common stock ($.50 par value) $ 35,000 Capital surplus 320,000 Retained earnings 708,120 Total owners
| The owners' equity accounts for Freya International are shown here. |
| Common stock ($.50 par value) | $ | 35,000 |
| Capital surplus | 320,000 | |
| Retained earnings | 708,120 | |
| Total owners equity | $ | 1,063,120 |
| a-1 | If Freya declares a five-for-one stock split, how many shares are outstanding now? (Do not round intermediate calculations.) |
| New shares outstanding |
| a-2 | What is the new par value per share? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) |
| New par value | $ per share |
| b-1 | If Freya declares a one-for-seven reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) |
| New shares outstanding |
| b-2 | 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 |
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Handbook Of The Economics Of Finance Corporate Finance Volume 1A
Authors: George M. Constantinides, M. Harris, Rene M. Stulz
1st Edition
0444513620, 978-0444513625
