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))



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  • CreatedJuly 26, 2013
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