Growth Industries’ current stockholders’ equity account is as follows:Preferred stock ..............$ 400,000Common stock (600,000 shares at $3 par) ..1,800,000Paid-in capital in excess of par .......200,000Retained earnings ............800,000Total stockholders’ equity .........$3,200,000a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split.b. Indicate the change, if any, expected if the firm declares a 1-for-11/2 reverse stock split.c. Indicate

Chapter 14, Problems #13

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
Growth Industries’ current stockholders’ equity account is as follows:
Preferred stock ..............$ 400,000
Common stock (600,000 shares at $3 par) ..1,800,000
Paid-in capital in excess of par .......200,000
Retained earnings ............800,000
Total stockholders’ equity .........$3,200,000
a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split.
b. Indicate the change, if any, expected if the firm declares a 1-for-11/2 reverse stock split.
c. Indicate the change, if any, expected if the firm declares a 3-for-1 stock split.
d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split.
e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split.
Personal Finance Problem

Related Book For answer-question

Principles Of Managerial Finance

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

ISBN: 978-0136119463