A corporation has 3 million shares of outstanding stock issued at market price of $5.It also has $45 million of retained earnings on its balance sheet.It announces a 2 for 1 stock split on August 1.The market price of the stock on that day is $12 per share.Which of the following would be the implication of this stock split?
A) Contributed capital will increase by $36 million
B) Retained earnings will decrease by $36 million
C) Dividends payable will increase by $36 million
D) No accounting entry will be made on this announcement.
Correct Answer:
Verified
Q84: The ROE ratio measures:
A)return shareholders receive in
Q85: All else equal,when companies make stock repurchases:
A)EPS
Q86: A company reported net income of $5.6
Q87: A company issues 100,000 shares of preferred
Q88: A company has 20,000 shares of preferred
Q90: Under IFRS preferred shares are classified as
Q91: All else equal,when the current price for
Q92: A lender may limit the ability of
Q93: A company has outstanding 10 million shares
Q94: Preferred shareholders can anticipate receiving an annual
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents