A conpany whose stock is selling for $45 has the following balance sheet: Assets $32,000 Liabilities $10,000 Common Stock 6,000 ($6 par;1,000 shares issued) Additional paid-in
A conpany whose stock is selling for $45 has the following balance sheet: Assets $32,000 Liabilities $10,000 Common Stock 6,000 ($6 par;1,000 shares issued) Additional paid-in
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...
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A conpany whose stock is selling for $45 has the following balance sheet:
Assets $32,000 Liabilities $10,000
Common Stock 6,000
($6 par;1,000 shares issued)
Additional paid-in capital 2,000
a. Construct a new balance sheet showing a 3 for 1 stock split. What is the new price for the stock?
b. What would be the balance sheet if the firm paid a 10% stock dividend (instead of the stock split)?
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