In the previous problem, suppose the company instead decides on a five for-one stock split. The firm's

Question:

In the previous problem, suppose the company instead decides on a five for-one stock split. The firm's 45 cent per share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last year's dividend on the presplit stock. What effect does this have on the equity accounts? What was last year's dividend 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...