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

Solution:
In a stock split retained earnings do not change