The owners’ equity accounts for Masterson International are shown here: Common stock ($1 par value) $ 75,000 Capital surplus 224,000 Retained earnings 740,000 Total owners’ equity $ 1,039,000 a-1. Suppose the company declares a two-for-one stock split. How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose the company declares a one-for-five reverse stock split. How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
The owners’ equity accounts for Masterson International are shown here: Common stock ($1 par value) $ 75,000 Capital surplus 224,000 Retained earnings 740,000 Total owners’ equity $ 1,039,000 a-1. Suppose the company declares a two-for-one stock split. How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose the company declares a one-for-five reverse stock split. How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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The owners’ equity accounts for Masterson International are shown here: |
Common stock ($1 par value) | $ | 75,000 | ||
Capital surplus | 224,000 | |||
|
740,000 | |||
Total owners’ equity | $ | 1,039,000 | ||
a-1. | Suppose the company declares a two-for-one stock split. How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
a-2. | What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b-1. | Suppose the company declares a one-for-five reverse stock split. How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
b-2. | What is the new par value per share? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
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