The company with common equity accounts shown here has


The company with the common equity accounts shown here has declared a 5-for-one stock split when the market value of its stock is $39 per share. The firm’s 60-cent per share cash dividend on the new (postsplit) shares represents an increase of 15 percent over last year’s dividend on the presplit stock.

Common stock ($1 par value) $ 445,000

Capital surplus 858,000

Retained earnings 3,840,800

Total owner's equity $ 5,143,800

What is the new par value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

New par value $_________ per share

What was last year's dividend per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Dividend Per share______________

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The company with common equity accounts shown here has
Reference No:- TGS02411361

Expected delivery within 24 Hours