Chapter 14, Problem 14.13P

Stock split: Firm Growth Industries’ current stockholders’ equity account is as follows:

Preferred stock	$400,000
Common stock (600,000 shares at $3 par)	$1 ,800,000
Paid-in capital in excess of par	$200,000
Retained earnings	$800,000
Total stockholders’ equity	$3,200,000

1. a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split.
2. b. Indicate the change, 1f any, expected 1f the firm declares a 1-for-1 ½ reverse stock split.
3. c. Indicate the change, if any, expected if the firm declares a 3-for-1 stock split.
4. d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split.
5. e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split.