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
Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
Principles of Financial Accounting (Elon University)
- On May 1st, Golden Harvest, Inc. purchased $1,500 worth of supplies on account. On December 31st, the fiscal year-end for Golden Harvest, it is determined that $800 worth of supplies still remain. What is the balance in the supplies account after adjustment?arrow_forwardI want to correct answer general accounting questionarrow_forwardWhat is the total stockholder's equity on these financial accounting question?arrow_forward
- What is the amount of overhead allocated to job 8- 17?arrow_forwardHawk, Inc. reported on its 2022 Statement of Cash Flows that it paid $95,400 for interest. The company reported $107,200 of Interest Expense on the 2022 Income Statement. The balance in Interest Payable on the 2022 Balance Sheet was $16,800. What was the balance in Interest Payable on the 2021 Balance Sheet? a) $5,000 b) $6,400 c) $16,800 d) $27,000 e) Unable to tell from the information given.arrow_forwardNeed help with this question solution general accountingarrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education