Carney Services, Inc., has just declared a 2-for-1 stock split. The company's pre-split common stockholders' equity was as follows:
$\begin{array}{lr}
\text { Common stock }(1,000,000 \text { shares, } \$ 2.50 \text { par }) & \$ 2,500,000 \
\text { Paid in excess } & 9,000,000 \
\text { Retained earnings } & 7,000,000 \
\text { Total common stockholders' equity } & \$ 18,500,000 \
\text { Book value per share: } \$ 18.50 &
\end{array}$ If the pre-split price of common stock was $28.50, what will the new common equity section of the balance sheet look like?

Question

Carney Services, Inc., has just declared a 2-for-1 stock split. The company's pre-split common stockholders' equity was as follows:
 $\begin{array}{lr}
\text { Common stock }(1,000,000 \text { shares, } \$ 2.50 \text { par }) & \$ 2,500,000 \
\text { Paid in excess } & 9,000,000 \
\text { Retained earnings } & 7,000,000 \
\text { Total common stockholders' equity } & \$ 18,500,000 \
\text { Book value per share: } \$ 18.50 &
\end{array}$ If the pre-split price of common stock was $28.50, what will the new common equity section of the balance sheet look like?

Quizplus · Accepted Answer

The Answer of Carney Services, Inc., has just declared a 2-for-1 stock split. The company's pre-split common stockholders' equity was as follows:
 $\begin{array}{lr}
\text { Common stock }(1,000,000 \text { shares, } \$ 2.50 \text { par }) & \$ 2,500,000 \
\text { Paid in excess } & 9,000,000 \
\text { Retained earnings } & 7,000,000 \
\text { Total common stockholders' equity } & \$ 18,500,000 \
\text { Book value per share: } \$ 18.50 &
\end{array}$ If the pre-split price of common stock was $28.50, what will the new common equity section of the balance sheet look like?

Carney Services, Inc If the Pre-Split Price of Common Stock Was $28