The ownersâ equity accounts for Overby International are shown here:
Common stock ($1 par value) $ 40,000 Capital surplus 188,000 Retained earnings 620,000 Total ownersâ equity $ 848,000
a. 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.)
New shares outstanding
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.)
New par value $ per share
b. 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.)
New shares outstanding
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.)
New par value $ per share
The ownersâ equity accounts for Overby International are shown here:
| Common stock ($1 par value) | $ | 40,000 | ||
| Capital surplus | 188,000 | |||
| Retained earnings | 620,000 | |||
| Total ownersâ equity | $ | 848,000 | ||
a. 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.)
New shares outstanding
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.)
New par value $ per share
b. 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.)
New shares outstanding
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.)
New par value $ per share
Related questions
| The owners' equity accounts for Freya International are shown here. |
| Common stock ($.60 par value) | $ | 30,000 |
| Capital surplus | 310,000 | |
| Retained earnings | 688,120 | |
| Total ownersâ equity | $ | 1,028,120 |
| a-1 | If Freya declares a three-for-one stock split, how many shares are outstanding now? (Do not round intermediate calculations.) |
| New shares outstanding |
| a-2 | What is the new par value per share? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) |
| New par value | $ per share |
| b-1 | If Freya declares a one-for-four reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) |
| New shares outstanding |
| b-2 | What is the new par value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New par value | $ per share |
The ownersâ equity accounts for Overby International are shown here:
| Common stock ($1 par value) | $ | 70,000 | ||
| Capital surplus | 197,000 | |||
| Retained earnings | 650,000 | |||
| Total ownersâ equity | $ | 917,000 | ||
a. Assume the company's stock currently sells for $46 per share and a stock dividend of 5 percent is declared.
How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
| Common stock | $ | ||
| Capital surplus | |||
| Retained earnings | |||
| Total ownersâ equity | $ | ||
b. Now assume that instead the company declares a stock dividend of 10 percent.
How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
| Common stock | $ | ||
| Capital surplus | |||
| Retained earnings | |||
| Total ownersâ equity | $ | ||
3.
| The owners' equity accounts for Freya International are shown here. |
| Common stock ($.40 par value) | $ | 20,000 |
| Capital surplus | 290,000 | |
| Retained earnings | 648,120 | |
| Total ownersâ equity | $ | 958,120 |
| a-1 | If Freya declares a two-for-one stock split, how many shares are outstanding now? (Do not round intermediate calculations.) |
| New shares outstanding |
| a-2 | What is the new par value per share? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) |
| New par value | $ per share |
| b-1 | If Freya declares a one-for-four reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) |
| New shares outstanding |
| b-2 | What is the new par value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New par value | $ per share |
