On September 1, Weiss Company has 200,000 shares of $15 par value ($159 market value) common stock that are issued and outstanding. Its balance sheet on that date shows the following account balances relating to commonstock:

     Common stock:    $3,000,000

     Paid-in capital in excess of par value     $1,750,000

On September 2,Weiss splits its stock 3-for-2 and reduces the par value to $10 per share.

a.) How many shares of common stock are issues and outstanding immediately after the stock split?

b.) What is the dollar balnce of the common stock account immediately after the stock split?

c.) What is the likely rrason that Weiss Company stock split?

Answer rating: 100% (QA)

a Immediately after the 3 for 2 stock split the company has 300000 sh... View the full answer