Firm A had the following selected items on its balance sheet: Cash $28,000,000 Common stock ($50par;2,000,000 shares outstanding $100,000,000 Additional paid-in-capital $10,000,000 Retained Earnings $62,000,000   How would each of these accounts appear after: A cash dividend of $1 per share? A 5 percent stock dividend (fair market value is $100 per share)? A one-for-two reverse split?

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
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Firm A had the following selected items on its balance sheet:

Cash

$28,000,000

Common stock ($50par;2,000,000 shares outstanding

$100,000,000

Additional paid-in-capital

$10,000,000

Retained Earnings

$62,000,000

 

How would each of these accounts appear after:

  1. A cash dividend of $1 per share?
  2. A 5 percent stock dividend (fair market value is $100 per share)?
  3. A one-for-two reverse split?
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