Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 shares = 100,000 The Board of Directors believes that the current Market Price of $50.00 per share is too high and is detracting from investors buying the shares. The Board Declared a 2:1 Stock Split. REQUIRED: 1) What is the effect of the stock split on the Common Shares?

Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 shares = 100,000 The Board of Directors believes that the current Market Price of $50.00 per share is too high and is detracting from investors buying the shares. The Board Declared a 2:1 Stock Split. REQUIRED: 1) What is the effect of the stock split on the Common Shares?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5P: Alert Companys shareholders equity prior to any of the following events is as follows: The company...

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