Firm A had the following selected items on its balance sheet: Cash....................... $ 28,000,000 Common stock ($50

Question:

Firm A had the following selected items on its balance sheet:
Cash....................... $ 28,000,000
Common stock ($50 par; 2,000,000 shares outstanding).. 100,000,000
Additional paid-in capital.............. 10,000,000
Retained earnings............... 62,000,000
How would each of these accounts appear after:
a. a cash of $1 per share?
b. a 5 percent stock (fair market value is $100 per share)?
c. a one-for-two reverse split?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...