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  
  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.)
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