The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 38-cent-per-share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last year’s dividend on the presplit stock.
Common stock ($1 par value) $ 460,000
Capital surplus 1,554,000
Retained earnings 3,876,000
Total owners’ equity $ 5,890,000
a. What is the new par value of the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
New par value $ per share
b. What was last year’s dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Dividends per share last year $