Stock Split Birch Enterprises reported the following information: common stock, $3 par; 750,000 shares authorized; 400,000 shares issued and outstanding. Required: What is the typical effect of a 4-for-1 stock split on the information Birch Enterprises reports above? If the market value of the common stock is $600 per share when the stock split is declared, what would you expect the approximate market value per share to be immediately after the split? Given the information provided above, calculate the effect on each of the following items. If required, round your answers to two decimal places. Authorized shares fill in the blank 1 shares Issued shares fill in the blank 2 shares Market value per share $fill in the blank 3 Par value per share $fill in the blank 4
Stock Split Birch Enterprises reported the following information: common stock, $3 par; 750,000 shares authorized; 400,000 shares issued and outstanding. Required: What is the typical effect of a 4-for-1 stock split on the information Birch Enterprises reports above? If the market value of the common stock is $600 per share when the stock split is declared, what would you expect the approximate market value per share to be immediately after the split? Given the information provided above, calculate the effect on each of the following items. If required, round your answers to two decimal places. Authorized shares fill in the blank 1 shares Issued shares fill in the blank 2 shares Market value per share $fill in the blank 3 Par value per share $fill in the blank 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Stock Split
Birch Enterprises reported the following information: common stock, $3 par; 750,000 shares authorized; 400,000 shares issued and outstanding.
Required:
What is the typical effect of a 4-for-1 stock split on the information Birch Enterprises reports above? If the market value of the common stock is $600 per share when the stock split is declared, what would you expect the approximate market value per share to be immediately after the split?
Given the information provided above, calculate the effect on each of the following items. If required, round your answers to two decimal places.
Authorized shares | fill in the blank 1 | shares |
Issued shares | fill in the blank 2 | shares |
Market value per share | $fill in the blank 3 | |
Par value per share | $fill in the blank 4 |
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education