The company with the common equity accounts shown here has declared a four-for-one stock split when the

Question:

The company with the common equity accounts shown here has declared a four-for-one stock split when the market value of its stock is $43 per share. The firm’s 75-cent per share cash dividend on the new (post split) shares represents an increase of 10 percent over last year’s dividend on the presplit stock.

Common stock ($1 par value) = $ 385,000

Capital surplus= 846,000

Retained earnings = 3,720,800

Total owner's equity=$ 4,951,800

What is the new par value per share? (Round your answer to 2 decimal places. (e.g., 32.16))

New par value=____ $ per share

What was last year's dividend per share? (Round your answer to 2 decimal places. (e.g., 32.16))

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...