Common stock ($1 par value) 406,000 Capital surplus 1,340,000 Retained earnings 3,427,000 Total owners’ equity 5,173,000 suppose the company instead decides on a four-for-one stock split. The firm’s 85-cent per share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last year’s dividend on the presplit stock. What effect does this have on the equity accounts? What was last year’s dividend per share?
Common stock ($1 par value) 406,000 Capital surplus 1,340,000 Retained earnings 3,427,000 Total owners’ equity 5,173,000 suppose the company instead decides on a four-for-one stock split. The firm’s 85-cent per share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last year’s dividend on the presplit stock. What effect does this have on the equity accounts? What was last year’s dividend per share?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Common stock ($1 par value) 406,000 Capital surplus 1,340,000 Total owners’ equity 5,173,000 |
suppose the company instead decides on a four-for-one stock split. The firm’s 85-cent per share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last year’s dividend on the presplit stock. What effect does this have on the equity accounts? What was last year’s dividend per share?
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