# Question

A firm has the following balance sheet:

a. Construct a new balance sheet showing the impact of a three-for-one split. If the current market price of the stock is $54, what is the price after the split?

b. Construct a new balance sheet showing the impact of a 10 percent stock dividend. After the stock dividend, what is the new price of the common stock?

a. Construct a new balance sheet showing the impact of a three-for-one split. If the current market price of the stock is $54, what is the price after the split?

b. Construct a new balance sheet showing the impact of a 10 percent stock dividend. After the stock dividend, what is the new price of the common stock?

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