Kaneb Services, Inc.has just declared a 3 for 2 stock split.The company's pre-split common stockholders' equity was as follows:

If the pre-split price of common stock was $42, what will be the amount of retained earnings after the split?
A)$140,100,000
B)$139,200,000
C)$182,100,000
D)$141,350,000

Question

Kaneb Services, Inc.has just declared a 3 for 2 stock split.The company's pre-split common stockholders' equity was as follows:

If the pre-split price of common stock was $42, what will be the amount of retained earnings after the split?
A)$140,100,000 
B)$139,200,000 
C)$182,100,000 
D)$141,350,000

Quizplus · Accepted Answer

In a stock split retained earnings do not change