What effect will a three-for-one stock split have on the following items found on a firm's financial statements? a.) Earnings per share $9.10 b.) Total equity $12,000,000 c.) Long-term debt $4,300,000 d.) Additional paid-in-capital $2,645,000 e.) Number of shares outstanding 1,000,000 f.) Earnings $5,300,000

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A: As per Golden Rules of accounting: Nominal accounts say that Debit all expenses and losses  Credit…

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A: SOLUTION- STOCK DIVIDEND  IS A TYPE OF DIVIDENDS THAT ISSUED TO SHAREHOLDERS IN TERMS OF SHARES.

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A: Dividend revenue:Dividend revenue is the share of profit received by the investee company from the…

Q: An entity provided the following information at year-end: Preference share capital, at par 2,000,000…

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A: A stock split is a process by which a company issues additional shares to the shareholders while the…

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A: Legal capital = $80,000

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A:

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A: Average Price - It is the price at which common stock issued to the shareholder's this includes par…

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Q: What effect will a three-for-one stock split have on the following items found on a firm's financial…

A: Three for stock split is dividing one stock into three stocks. This stock split does not have any…

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.