e has 500,000 authorized shares of $2 par value common stock, with 110,000 shares issued and outstanding with a total current market value of $150,000. You are the owner of 12% of the stock. Which statement describes what happens when Sapphire executes a 3-for-1 forward stock split? You will own 36% of the company’s stock after the split. Your ownership is worth $450,000 after the split. You return your original shares to the company, and receive 39,600 new shares in exchange. You receive 39,600 additional shares of stoc
e has 500,000 authorized shares of $2 par value common stock, with 110,000 shares issued and outstanding with a total current market value of $150,000. You are the owner of 12% of the stock. Which statement describes what happens when Sapphire executes a 3-for-1 forward stock split? You will own 36% of the company’s stock after the split. Your ownership is worth $450,000 after the split. You return your original shares to the company, and receive 39,600 new shares in exchange. You receive 39,600 additional shares of stoc
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 14EB: Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the...
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Sapphire has 500,000 authorized shares of $2 par value common stock, with 110,000 shares issued and outstanding with a total current market value of $150,000. You are the owner of 12% of the stock.
Which statement describes what happens when Sapphire executes a 3-for-1 forward stock split?
- You will own 36% of the company’s stock after the split.
- Your ownership is worth $450,000 after the split.
- You return your original shares to the company, and receive 39,600 new shares in exchange.
- You receive 39,600 additional shares of stock.
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