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Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
Edition 16ISBN: 978-0077862381Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
Edition 16ISBN: 978-0077862381 Exercise 54
Stock Split
Smelling Company declared a 2-for-l stock split on its common stock in order to intentionally reduce the market value of its stock so that it would be an attractive investment for a larger set of investors.he companys common stock is described as follows:
Common stock: 100,000 shares outstanding, $10 par value, originally sold at $12.50, current market price $50.
Describe the likely impact, if any, that the 2-for-l stock split will have on ( a ) the number of shares outstanding, ( b ) the market price of the stock, and ( c ) the total stockholders equity attributable to common stock.
Smelling Company declared a 2-for-l stock split on its common stock in order to intentionally reduce the market value of its stock so that it would be an attractive investment for a larger set of investors.he companys common stock is described as follows:
Common stock: 100,000 shares outstanding, $10 par value, originally sold at $12.50, current market price $50.
Describe the likely impact, if any, that the 2-for-l stock split will have on ( a ) the number of shares outstanding, ( b ) the market price of the stock, and ( c ) the total stockholders equity attributable to common stock.
Explanation
Verified
Verified
Outstanding Common Stock 100,000 shares
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Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
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