The owners' equity accounts for Vulcano International are shown here: Common stock ($.40 par value) Capital surplus Retained earnings Total owners' equity $ 25,000 300,000 668,120 $ 993,120 a-1. If the company declares a four-for-one stock split, how many shares will be outstanding? Note: Do not round intermediate calculations. a-2. What is the new par value per share? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. b-1. If the company declares a one-for-five reverse stock split, how many shares are outstanding now? Note: Do not round intermediate calculations. b-2. What is the new par value per share? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a-1. New shares outstanding a-2. New par value per share b-1. New shares outstanding b-2. New par value per share
The owners' equity accounts for Vulcano International are shown here: Common stock ($.40 par value) Capital surplus Retained earnings Total owners' equity $ 25,000 300,000 668,120 $ 993,120 a-1. If the company declares a four-for-one stock split, how many shares will be outstanding? Note: Do not round intermediate calculations. a-2. What is the new par value per share? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. b-1. If the company declares a one-for-five reverse stock split, how many shares are outstanding now? Note: Do not round intermediate calculations. b-2. What is the new par value per share? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a-1. New shares outstanding a-2. New par value per share b-1. New shares outstanding b-2. New par value per share
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The owners' equity accounts for Vulcano International are shown here:
Common stock ($.40 par value)
Capital surplus
Retained earnings
Total owners' equity
$ 25,000
300,000
668,120
$ 993,120
a-1. If the company declares a four-for-one stock split, how many shares will be outstanding?
Note: Do not round intermediate calculations.
a-2. What is the new par value per share?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
b-1. If the company declares a one-for-five reverse stock split, how many shares are outstanding now?
Note: Do not round intermediate calculations.
b-2. What is the new par value per share?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
a-1. New shares outstanding
a-2. New par value
per share
b-1. New shares outstanding
b-2. New par value
per share
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