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?

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Assets Cash Accounts receivable 110,000 Long-term debt Inventory Liabilities and Equity $20,000 100,000 32,000 s 20,000 Accounts payable Common stock ($8 par; 4,000 shares outstanding) Additional paid-in capital Retained earnings 120,000 Plant and equipment 250,000 148,000 200,000 $500,000 $500,000 Assets Cash Accounts receivable Inventory Liabilities and Equity Accounts payable Long-term debt Common stock par, shares outstanding Plant and equipment Additional paid-in capital Retained earnings Liabilities and Equity Accounts payable Long-term debt Common stock Assets as Accounts receivable _ Inventory par, shares outstanding) Plant and equipment Additional paid-in capital Retained earnings