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QUESTION ( 13 AND 14 )

13. Stock Dividends: The owners' equity accounts for Quadrangle International are shown here: a) If Quadrangle stock currently sells for $25 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 Quadrangle declared a 25 percent stock dividend, how would the accounts change? 14. Stock Splits: For the company in Problem 13, show how the equity accounts will change if: a) Quadrangle declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share? b) Quadrangle declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share