Question: Question 4 (25 marks) Dim Sum Restaurant Group Limited has the following shareholders equity account as of 31 December 2018 Share capital $250,000 Capital surplus

Question 4 (25 marks) Dim Sum Restaurant Group Limited has the following shareholders equity account as of 31 December 2018 Share capital $250,000 Capital surplus Retained profit $950,000 $13,850,600 Total shareholders' equity $15,050,600 Note: The par value of common stock is S1 per share Dim Sum's board of directors has just declared a 20% share dividend when the market price is $25 per share. What are the new figures for each of the items in the table above? a (10 marks) b Suppose the board of directors decides instead to have a one for ten reverse share split. The consensus forecast of dividend per share (DPS) was $0.65 for next year before the announcement of the reverse share split. What is the revised DPS forecast for next year? (10 marks c Give two plausible reasons for companies to announce reverse splits

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