Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant. To determine: The number of shares outstanding after the split.

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Answer 1

Question

Chapter 11, Problem 11.20EX

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

(b)

To determine

The approximate market price per share after the split, if market price per share before the stock split is $210.

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Pinnacle Corp. reports sales of $15 million for Year 2, with a gross profit margin of 35%. 25% of Pinnacle's sales are on credit. Item Year I Accounts Receivable $200,000 Year 2 $250,000 $1,200,000 $1,500,000 $1,000,000 $1,100,000 Inventory Accounts Payable What is the accounts payable days outstanding at the end of Year 2 for Pinnacle Corp.?

I am searching for the correct answer to this financial accounting problem with proper accounting rules.

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Answer 2

Question

Chapter 11, Problem 11.20EX

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

(b)

To determine

The approximate market price per share after the split, if market price per share before the stock split is $210.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 11.20EX

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

(b)

To determine

The approximate market price per share after the split, if market price per share before the stock split is $210.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 11, Problem 11.20EX

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

(b)

To determine

The approximate market price per share after the split, if market price per share before the stock split is $210.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 11, Problem 11.20EX

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

(b)

To determine

The approximate market price per share after the split, if market price per share before the stock split is $210.

Answer 6

Chapter 11, Problem 11.20EX

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

Answer 7

Chapter 11, Problem 11.20EX

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

Answer 8

(b)

To determine

The approximate market price per share after the split, if market price per share before the stock split is $210.

Answer 9

(b)

To determine

The approximate market price per share after the split, if market price per share before the stock split is $210.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant. To determine: The number of shares outstanding after the split.

Solution Summary: The author explains that stock splits increase the number of outstanding shares, thereby reducing the market price of each share, but keeping the corporation's total market value constant.

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

The approximate market price per share after the split, if market price per share before the stock split is $210.

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Chapter 11 Solutions