Question: Stock Splits in the previous problem, suppose the company instead decides on a five-for-one stock split. The firms 90-cent per share cash dividend on the

Stock Splits in the previous problem, suppose the company instead decides on a five-for-one stock split. The firm’s 90-cent per share cash dividend on the new (post split) shares represents and 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?

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