The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm's 34-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.
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| Common stock ($1 par value) |
$ 500,000 |
| Capital surplus |
1,558,000 |
| Retained earnings |
3,884,000 |
|
|
| Total owners' equity |
$ 5,942,000 |
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|
|
| Requirement 1: |
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What is the new par value of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
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| New par value |
$ per share |
| Requirement 2: |
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What was last year's dividend per share? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
|
| Dividends per share last year |
$ |