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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The paid in capital section of the stockholders equity section is as follows: COmmon Stock, Par value $2.00; Authorized 100,000 shs, Issued and outstanding 50,000 shares = 100,000 the board of directions beleives 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. Requried: 1) what is the effect of the split on the common shares? list all items effected by the stock split. - par value - issued and outstanding shares - Market price of the shares - Common stock balance after the split on the paid in capital Section?
Required: 5. The average per-share sales price of the common stock when issue $? per share 6. The cost of the treasury stock per share $? per share 7. The total stockholders' equity $? 8. The per-share book value of the common stock assuming that there are no dividends in arrears and that the preferred stock can be redeemed at its par value $? per share
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ol ! 1 Current Attempt in Progress On October 31, the stockholders' equity section of Cullumber Company consists of common stock $370,000 and retained earnings $904,000. Cullumber is considering the following two courses of action: (1) declaring a 6% stock dividend on the 37,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. After After Stock Stock Before Action Dividend Split Stockholders' equity Paid-in capital Q A Common stock In excess of par NO 2 N Total paid-in capital Retained earnings Total stockholders' equity Outstanding shares 30 W S #3 X H 1 option command E D $ Ad 4 $ $ 288 FA R C do L % 5 F T V MacBook Air F6 < 6 G Y B & 7 H 90 U W 00 8 N DI J ( 1 9 DE K M D O MOSISO L F H D Р W 1 . ( command 1 ?
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