Concept Introduction:
Stock split
In a stock split, company issues additional shares of stock to their existing shareholders to infuse liquidity. When a company wants to lower its market price of its stock in order to make it more enticing to potential investors, they often spit their stock. Although the number of shares outstanding increase but the market capitalization of the company remains the same
Requirement 1:
Shares of common stock owned after stock split
Concept Introduction:
Stock split In a stock split, company issues additional shares of stock to their existing shareholders to infuse liquidity. When a company wants to lower its market price of its stock in order to make it more enticing to potential investors, they often spit their stock. Although the number of shares outstanding increase but the market capitalization of the company remains the same
Requirement 2:
Effect on Market price per share of stock after stock split
Concept Introduction:
Stock split In a stock split, company issues additional shares of stock to their existing shareholders to infuse liquidity. When a company wants to lower its market price of its stock in order to make it more enticing to potential investors, they often spit their stock. Although the number of shares outstanding increase but the market capitalization of the company remains the same
Requirement 3:
Effect on Par value per share of stock after stock split
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Chapter 8 Solutions
Accounting: What the Numbers Mean
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