For the company in problem 2, show how the equity accounts will change if :

a) vidi international declares a four-for-one stock split. How many shares are outstanding now?

b) vidi international declares a one-for-five reverse stock split. How many shares are outstanding now? what is the new par value per share?

Reference this ......

The owners' equity accounts for Vidi International are shown here : common stock ( 0.50 dollar par value) 25,000. Capital surplus 215,000 Retained earnings 642,700 Total owners' equity 882,700

a) If the company's stock currently sells for $32 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? show how the equity accounts would change.

b) If the company declared a 25 percent stock dividend, how would the accounts change?