Question: Please answer number 5, and type it. 4) Stock Dividends The owners' equity accounts for Masterson International are shown here: Common stock ($1 par value)

Please answer number 5, and type it.

Please answer number 5, and type it. 4) Stock Dividends The owners'

4) Stock Dividends The owners' equity accounts for Masterson International are shown here: Common stock ($1 par value) $ 45,000 Capital surplus 157,000 Retained earnings 603,000 Total owners' equity $805,000 a. If the company's stock currently sells for $42 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? 5) Stock Splits For the company in Problem 4, show how the equity accounts will change if: a. The company declares a two-for-one stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!