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The owner's equity accounts for North Inside Berhad are shown here; Common stock (RM2 par value,200,000 units) Capital surplus Retained earnings Total owners' equity RM400,000
The owner's equity accounts for North Inside Berhad are shown here; Common stock (RM2 par value,200,000 units) Capital surplus Retained earnings Total owners' equity RM400,000 285,000 649,180 1.334.180 Required: i. If North stock currently sells for RM14 per share and a 10% stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. (5 marks) ii. North declares a one-for-five reverse stock split. How many shares are outstanding now? Calculate the new par value per share
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