Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owners' equity accounts for Freya International are shown here. Common stock ($.50 par value) $ 38,000 Capital surplus 330,000 Retained earnings 728,120 Total owners

The owners' equity accounts for Freya International are shown here.

Common stock ($.50 par value) $ 38,000
Capital surplus 330,000
Retained earnings 728,120
Total owners equity $ 1,096,120

a-1

If Freya declares a two-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-four 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Airline Management Finance

Authors: Victor Hughes

1st Edition

1138610690, 978-1138610699

More Books

Students also viewed these Finance questions