Question: the answer it false On October 31, the equity section of Lucerne AG consists of share capital-ordinary CHF500,000 and retained earnings CHF 900,000. Lucerne is
On October 31, the equity section of Lucerne AG consists of share capital-ordinary CHF500,000 and retained earnings CHF 900,000. Lucerne is considering the following two courses of action: (1) declaring a 5% share dividend on the 50,000,CHF10 par value shares outstanding, or (2) effecting a 2 -for-1 share split that will reduce par value to CHF per share. The current market price is CHF14 per share: Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share, eTextbook and Media On October 31, the equity section of Lucerne AG consists of share capital-ordinary CHF500,000 and retained earnings CHF 900,000. Lucerne is considering the following two courses of action: (1) declaring a 5% share dividend on the 50,000,CHF10 par value shares outstanding, or (2) effecting a 2 -for-1 share split that will reduce par value to CHF per share. The current market price is CHF14 per share: Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share, eTextbook and Media
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
