Question: 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)

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?

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