The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split. Introduction: The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

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Answer 1

Question

Chapter 14, Problem 5QP

a)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

b)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

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Students have asked these similar questions

A stock split. Select one: 1. Will have no effect on the par value per share of stock? 2. Will decrease par or stated value 3. will increase the total par value of the stock 4. Will increase total paid in capital

Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.

Which of the following results in increasing basic earnings per share? Select one: a. Paying more than carrying value to retire outstanding bonds. b. Issuing cumulative preferred stock. c. Repurchase of common shares. d. Issuing a 2:1 stock split. e. All of these increase basic earnings per share.

Answer 2

Question

Chapter 14, Problem 5QP

a)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

b)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

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Answer 3

Question

Chapter 14, Problem 5QP

a)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

b)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

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Answer 4

Question

Chapter 14, Problem 5QP

a)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

b)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 5QP

a)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

b)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

Answer 6

Chapter 14, Problem 5QP

a)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

Answer 7

Chapter 14, Problem 5QP

a)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

Answer 8

b)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

Answer 9

b)

Summary Introduction

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 14.1 - Prob. 14.1ACQ Ch. 14.1 - Prob. 14.1BCQ Ch. 14.1 - Prob. 14.1CCQ Ch. 14.2 - Prob. 14.2ACQ Ch. 14.2 - Prob. 14.2BCQ Ch. 14.2 - Prob. 14.2CCQ Ch. 14.3 - Prob. 14.3ACQ Ch. 14.3 - Prob. 14.3BCQ Ch. 14.5 - Prob. 14.5ACQ Ch. 14.5 - Prob. 14.5BCQ

The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split. Introduction: The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

Solution Summary: The author explains how the equity account changes by the new par value of 0.50 per share and the outstanding shares are 70,000.

Videos

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

Want to see the full answer?

Chapter 14 Solutions

The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split. Introduction: The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

Solution Summary: The author explains how the equity account changes by the new par value of 0.50 per share and the outstanding shares are 70,000.

Videos

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split. Introduction: The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.

To determine: The number of shares outstanding and new par value of the shares when the company declares a 1-4 reverse stock split.

Want to see the full answer?

Chapter 14 Solutions

To determine: The number of shares outstanding and new par value of the shares when the company declares a 2-1 stock split.

Introduction:

The par value of the common stock gets affected in the equity account. Stock split reduces the stock price as the number of shares outstanding increases.