Suncor Energy Inc. On May 14, 2008, Suncor Energy Inc. completed a 2-for-1 stock split of its common shares. Access the 2008 and 2007 annual reports from the company’s website (www.suncor.ca).
Instructions
(a). Why might Suncor have declared a stock split?
(b). What impact did the stock split have on (1) total shareholders’ equity, (2) total book value, (3) number of outstanding shares, and (4) book value per share? Examine the 2007 numbers as originally filed and the restated 2007 comparison numbers in the 2008 year-end annual reports to reflect this change for number of shares outstanding, the total dollar value of common shares outstanding, and earnings per share data.
(c). What impact did the split have on the shares’ market value? What has since happened to their market price?