Kosmier Company has outstanding 500,000 shares of $50 par value common stock that originally sold for $60

Question:

Kosmier Company has outstanding 500,000 shares of $50 that originally sold for $60 per share. During the three most recent years, the company carried out the following activities in the order presented: declared and distributed a 10 percent stock declared and paid a cash of $1 per share, declared and distributed a 2-for-1 stock split, and declared and paid a $0.60 per share cash a. Determine the number of shares of stock outstanding after the four transactions described above.
b. Determine the amount of cash that the company paid in the four transactions described above.
c. If you were a stockholder who held 100 shares of stock that you purchased four years ago when the market value of the shares was $65, how many shares would you own after the four transactions described above? If the market value of the stock was $40 after the four transactions, would you be better or worse off than before the four transactions?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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,...