The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 33-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) $ 510,000
Capital surplus 1,559,000
Retained earnings 3,886,000
Total owners’ equity $ 5,955,000
A. What is the new par value of the stock?
B. What was last year’s dividend per share?