In the previous problem, suppose the company instead decides on a five for one stock split The firms 80 cent per share cash dividend on the new (post split) shares represents an increase of 10 percent over last years dividend on the pre split stock What effect does this have on the equity accounts ...

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In the previous problem, suppose the company instead decides on a five-for-one stock split. The firms 80-cent

Question:

In the previous problem, suppose the company instead decides on a five-for-one stock split. The firm’s 80-cent per share cash on the new (post-split) shares represents an increase of 10 percent over last year’s on the pre-split stock. What effect does this have on the equity accounts? What was last year’s per share?
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...