Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)
Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6)
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Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split.
Problem 10-3A Part 1
Required:
1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)
Transcribed Image Text:After 100%
Stock
After 2-for-1
Before
Stock Split
Dividend
$ 1,200
54,000
Common stock, $1 par value
Additional paid-in capital
Total paid-in capital
55,200
Retained earnings
23,350
Total stockholders' equity
$ 78,550
0 $
Shares outstanding
1,200
Par value per share
1.00
Share price
120
%24
%24
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