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Firm A had the following selected items on its balance sheet:

Cash

$28,000,000

Common stock ($50 par, 2,000,000 shares outstanding)

100,000,000

Additional paid-in capital

10,000,000

Retained earnings

62,000,000

How would each of these accounts appear after:

a) A cash dividend of $1 per share?

b) A 5 percent stock dividend (fair market value is $100 per share)?

c) A one-for-two reverse split?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9792677

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