The paid in capital section of the stockholders equity section is as follows: COmmon Stock, Par value $2.00; Authorized 100,000 shs, Issued and outstanding 50,000 shares = 100,000 the board of directions beleives that the current market price of $50.00 per share is too high and is detracting from investors buying the shares. The board declared a 2:1 stock split. Requried: 1) what is the effect of the split on the common shares? list all items effected by the stock split. - par value - issued and outstanding shares - Market price of the shares - Common stock balance after the split on the paid in capital Section?
The paid in capital section of the stockholders equity section is as follows: COmmon Stock, Par value $2.00; Authorized 100,000 shs, Issued and outstanding 50,000 shares = 100,000 the board of directions beleives that the current market price of $50.00 per share is too high and is detracting from investors buying the shares. The board declared a 2:1 stock split. Requried: 1) what is the effect of the split on the common shares? list all items effected by the stock split. - par value - issued and outstanding shares - Market price of the shares - Common stock balance after the split on the paid in capital Section?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The paid in capital section of the
COmmon Stock, Par value $2.00; Authorized 100,000 shs, Issued and outstanding 50,000 shares = 100,000
the board of directions beleives that the current market price of $50.00 per share is too high and is detracting from investors buying the shares.
The board declared a 2:1 stock split.
Requried:
1) what is the effect of the split on the common shares?
list all items effected by the stock split.
- par value
- issued and outstanding shares
- Market price of the shares
- Common stock balance after the split on the paid in capital Section?
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