The company with the common equity accounts shown here has declared a 12 percent dividend at a time when the market value of its stock is $35 per share.
common stock ($1 per value 198,000
capital surplus 1,753,000
Retained earnings 3,500,700
Total owners equity 5,451,700
Suppose the company instead decides on a five for one stock split. The firm's 70 cent per share cash dividend on the new (post-split) shares represents an increase of 10 percent over last year's dividend on the pre-split stock. What effect does this have on equity accounts? What was last year's dividend per share?© BrainMass Inc. brainmass.com June 4, 2020, 12:41 am ad1c9bdddf
The equity accounts are unchanged except the new par value of the ...
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