Swifty Corporation splits its common stock 3 for 1, when the market value is $82 per share. Prior to the split, Swifty had 100000 shares of $15 par value common stock issued and outstanding. After the split, the par value of the stock O is reduced to $45 per share. O is reduced to $3 per share. O remains the same. O is reduced to $5 per share.

Swifty Corporation splits its common stock 3 for 1, when the market value is $82 per share. Prior to the split, Swifty had 100000 shares of $15 par value common stock issued and outstanding. After the split, the par value of the stock O is reduced to $45 per share. O is reduced to $3 per share. O remains the same. O is reduced to $5 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ee 111.
Katie Homes and Garden Co. has 13,700,000 shares outstanding. The stock is currently selling at $60 per share. If an unfriendly outside group acquired 20 percent of the shares, existing stockholders will be able to buy new shares at 25 percent below the currently existing stock price. a. How many shares must the unfriendly outside group acquire for the poison pill to go into effect? (Do not round intermediate calculations.) Number of shares b. What will be the new purchase price for the existing stockholders? (Do not round intermediate calculations. Round your answer to 2 decimal places.) New purchase price S
On September 15, YG Corporation splits up its share 2-for-5 when the market value was USD65 per share. Prior to the split, YG Corporation had 200,000 shares of USD15 par value stock. After the split, what is the par value of the stock and the number of stocks outstanding?
Nets & Flicks would like to take over Jeff & Bezos. Both companies are debt-free. For that, Nets & Flicks is offering to Jeff & Bezos cash and cash-like equivalents in the total amount of $73,000. Nets & Flicks currently has a total of 1,750 shares, and the market value of each share is $20. Jeff & Bezos, on the other hand, currently has a total of 2,500 shares, and the market value of each share is $28. The merger of these two companies would have a $5,000 incremental value if it is successful. The net present value of the merger from the point of view of Nets & Flicks equals. Multiple Choice $3,000 $4,000 $2,000 $5,000 $6,000
MULTIPLE CHOICE Travis Company has 10,000 shares of common stock with a par value of P10 per stock. A 2-for-1 stock split is made. The market price of the stock was P16 prior to the split. What will the market price per share be immediately subsequent to the stock split? *a. P4b. P6c. P8d. P10e. None of the above
Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 18,000 shares of common stock outstanding, declared a 2-for-1 stock split. a. What will be the number of shares outstanding after the split? shares b. If the common stock had a market price of $228 per share before the stock split, what would be an approximate market price per share after the split? per share
National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at P60.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.
Lovie Corporation stock sells at P78 a share with rights on. The subscription price is P60, and five rights are needed to purchase a new share of stock. What is the value of each right?
i need solution step by step
ABC Company had 5,000 ordinary shares of P500 par value outstanding and 500 preference shares of P1,000 par value outstanding. The current market price of the ordinary share is P1,200 and total equity amounts to P3,600,000. The preference shareholders have a liquidation preference of P1,400 per share and no dividends are in arrears. What is the book value per ordinary share? (Round answer to a whole number)
When Harry Old's Corporation announces a 4-for-1 split down/reverse, it has 500,000 common stocks with a par value of USD50 on the market. The shares had a market price of USD100 per share prior to the split. Determine 1) the number of shares issued and 2) the par value of one common stock after the split.
Willey’s Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey’s Grill & Restaurant, which had 36,000 shares of common stock outstanding, declared a 2-for-1 stock split. a. What will be the number of shares outstanding after the split?fill in the blank 1 shares b. If the common stock had a market price of $192 per share before the stock split, what would be an approximate market price per share after the split?$fill in the blank 2 per share