Question

In problem 19.8, suppose the company instead decides on a five-for-one stock split. The firm’s $0.45 per share cash dividend on the new (post-split) shares represents an increase o 10 percent over last year’s dividend on the pre-split stock. What efect does this have on the equity accounts? What was last year’s dividend per share?
In problem 19.8
Common stock ($1 par value)..........$ 410,000
Capital surplus................2,150,000
Retained earnings..............5,320,000
Total shareholders’ equity............$7,880,000


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  • CreatedJune 17, 2015
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