Kosmier Company has outstanding 500,000 shares of $50 par value common stock that originally sold for $60 per share. During the three most recent years, the company carried out the following activities in the order presented: declared and distributed a 10 percent stock dividend, declared and paid a cash dividend of $1 per share; declared and distributed a 2-for-1 stock split, and declared and paid a $0.60 per share cash dividend.
A. Determine the number of shares of stock outstanding after the four transactions described above.
B. Determine the amount of cash that the company paid in the four transactions described above.
C. Assume if you were a stockholder who held 100 shares of stock that you purchased four years ago when the market value of the shares was $65, how many shares would you own after the four transactions described above?