National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at P60.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.

National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at P60.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On March 1, Florida Blue instituted a 5-for-2 stock split. Before the split, Florida Blue had 150…

A: The share split is a type of corporate event in which the larger value of stock is split into…

Q: Bob’s Belts issued a 2 for 1 stock split. The balance in retained earnings at the time of the split…

A: Correct answer is D) $0 Stock splits do not affect stockholders equity

Q: A company's stock currently trades at P15 per share. The company just declared a 20% stock dividend.…

A: The stock price after the stock dividend is determined by dividing the stock price before the stock…

Q: Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split.…

A: A stock split refers splitting or dividing a single stock into multiple stocks. The face value and…

Q: A company's stock currently trades at P15 per share. The company is going to undertake a 3-2 stock…

A: Lets understand the basics. Stock split is as the name suggest split the share from one share to…

Q: Concord Corporation has 200,000 common shares outstanding with a carrying value of $17 per share.…

A: Divide current shares into additional shares is a corporate action known as a stock split. A stock…

Q: The New Dance LLC. has 200 shares of oustanding; cumulative preferred stock that calls quarterly…

A: Preferred stock is a type of combination of debt and equity and has preference over common stock in…

Q: A corporation, which had 25,400 shares of common stock outstanding, declared a 4-for-1 stock split.…

A: Stock split refers to one of the ways that the company uses to increase the number of shares issued…

Q: Burney Chemicals has stock price Rs.150 per share. They have recently completed a 3-for-1 stock…

A: The share price is the current market price of the share. It is the price of the share at which any…

Q: National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the…

A: Introduction: Stock split: Splitting of the share face value in to parts called as stock split.…

Q: A corporation, which had 24,100 shares of common stock outstanding, declared a 5-for-1 stock split.…

A: Stock split is one of the method in which one share of the company is divided or split into multiple…

Q: Sunland Corporation has 9,400 common shares issued when it announces a 3-for-1 split. Before the…

A: The issued shares increase the total Stockholder's equity. The additional paid in capital represents…

Q: Robinson's has 46,000 shares of stock outstanding with a par value of $1 per share and a market…

A: The firm announces the stock split of 2-for-1.

Q: Bramble Corporation has 115,000 common shares outstanding with a carrying value of $24 per share.…

A: A stock split is an action performed by the companies which divides the existing shares into…

Q: Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share.…

A: Shares Outstanding = 2,500,000 Share Price = RM45 per share

Q: The board of directors of Sizzy Company, whose USD50 par value share capital is currently trading at…

A: Calculation of percentage of share dividend are as follows.

Q: A corporation that had 26,200 shares of common stock outstanding declared a 5-for-1 stock split. a.…

A: Journal entry is a primary entry that records the financial transactions initially. The transactions…

Q: atech Inc. sidering one of the three following courses of action: (1) paying a $0.40 cash dividend,…

A: Stock dividend results in capitalization of retained earnings and increasing in nos of shares.Stock…

Q: CBA Inc. has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The…

A: Solution:Stock dividend means payment of dividend shareholders in form of shares.

Q: Your corporation currently has 200,000 shares of stock outstanding that sells for $50.00 per share.…

A: Number of shares before split = 200,000 Price per share before split = $ 50 Split ratio = five-…

Q: Weiland, Incorporated, has 440, 000 shares outstanding that sell for $94 per share. The company…

A: A stock split is a corporate action that the company undertakes which increases the number of shares…

Q: A corporation, which had 36,700 shares of common stock outstanding, declared a 5-for-1 stock split.…

A: The stock split increases the number of the shares outstanding. The stock split decreases the par…

Q: Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation…

A: Stock dividend: Stock dividend is the payment made in the form of additional shares to the…

Q: Montedosa Corporation has 400,000 shares of common stock outstanding, a P/E ratio of 8, and P500,000…

A: Spliting of share is that under which board of the director will increase or decrease the no. share…

Q: A company's stock was trading at $72.45 right before the company conducted a 7-for-1 stock split.…

A: A stock split is a corporate action where the existing shares are split into more shares depending…

Q: The common shares of Hoover Inc. are currently selling at $143 per share. The directors want to…

A: a. Prepare journal entry to record the board votes a 2-for-1 stock split. Particular debit credit…

Q: a public company has 1,000 common stock shares outstanding, where each share has a $10 par value.…

A: The total par value of shares outstanding before and after the stock split remains the same.

Q: A corporation, which had 33,000 shares of common stock outstanding, declared a 3-for-1 stock split.…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: A corporation, which had 39,700 shares of common stock outstanding, declared a 3-for-1 stock split.…

A: The stock split is a method of increasing the number of shares by decreasing the market value at the…

Q: In May 2011, Lowell Inc. announced a 6-for-2 stock split. On the split date, Cerner had about 80…

A: Stock Split ratio = 6:2 No.of shares outstanding = 80 million

Q: Z Corporation has 1,000 shares of K20 par value common stock outstanding. The company is considering…

A: Stock Split - Stock Split is the issuance of additional shares to the existing shareholders in the…

Q: Stephanie's C'.lfes, lnc., Declared a dividend of $ 1.30 per share for record holders on Tuesday,…

A: Formula: Total Dividend amount = Dividend per share x Total outstanding shares. Multiplying total…

Q: The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors…

A: a. Prepare journal entry to record the board votes a 2-for-1 stock split.

Q: City Center Pharmacy has 24,500 shares of stock outstanding with a par value of $1 per share and a…

A: First of all, the no. of shares outstanding is 24,500 The company announced a three for five reverse…

Q: Petrolium development Oman, has only one class of stock issued, which is common stock. The company's…

A: The financial needs of the company can be fulfilled by issuing the shares, bonds, debentures, etc.,…

Q: Sabie Inc. has 100,000 authorized shares of common stock, 2,000 shares issued and 1,800 outstanding.…

A: Stock split is the division of existing shares. Stock split is not recorded, hence it does not…

Q: A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150…

A: Introduction: Stock split: Its splitting of face value. After stock split the number of outstanding…

Q: CBA Incorporated has 400,000 shares outstanding with a $5 par value. The shares were issued for $12.…

A: Stock dividend means payment of dividend to shareholders in form of issue of shares. There will be…

Q: South Shore Limited has 14,500 shares of stock outstanding with a par value of $1 per share and a…

A: Stock Split When a company divides its existing shares into the new multiple shares then this…

Q: June 2018, Dollarama Inc. completed a 3-for-1 stock split. Immediately before the split, the…

A: Stock split does not affect the retained earnings and paid in capital. It results in change in…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A corporation that had 28,000 shares of common stock outstanding declared a 4-for-1 stock split. a. What will be the number of shares outstanding after the split? shares b. If the common stock had a market price of $92 per share before the stock split, what would be an approximate market price per share after the split? per share c. Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank. Debit Credit Account
Taha Company announces a 4:1 stock split. Prior to the stock split, Taha had 1,000,000 shares of common stock outstanding and the par value was $0.20 per share. After the stock split, Taha would have: 4,000,000 outstanding shares with a par value of $0.05 per share. 250,000 outstanding shares with a par value of $0.05 per share. 250,000 outstanding shares with a par value of $0.80 per share. 4,000,000 outstanding shares with a par value of $0.80 per share.
Zyra Company is conducting an initial public offering of 2,500,000 shares. Zyra Company already had 4,000,000 issued and outstanding shares, The new IPO shares shall be sold at P3 per share. What is the tax on initial public offering?
A corporation, which had 37,300 shares of common stock outstanding, declared a 5-for-1 stock split. a. What will be the number of shares outstanding after the split?fill in the blank 7511bf07efebf9c_1 shares b. If the common stock had a market price of $180 per share before the stock split, what would be an approximate market price per share after the split?$fill in the blank 7511bf07efebf9c_2 per share c. Journalize the entry to record the stock split. If no entry is required, type "No Entry" and leave the amount boxes blank. blank - Select - - Select - - Select - - Select -
On September 15, YG Corporation splits up its share 2-for-5 when the market value was USD65 per share. Prior to the split, YG Corporation had 200,000 shares of USD15 par value stock. After the split, what is the par value of the stock and the number of stocks outstanding?
National Co. recently completed a 3-for-1 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was P150 per share. After the split, the total market value of the company’s stock equaled P1.5 billion. What was the price of the company’s stock following the stock split?
Daisy Corp. recently completed a 2-for-1 stock split. Before the split, the company had 10,000,000 shares outstanding and its stock price was P150 per share. After the split, the total market value of the company’s stock equaled P1.5 billion. The total share capital balance of Daisy Corp. is P350,000,000. 1. What was the price of the company’s stock following the stock split? 2. Determine the new par value of each share.
The Liang Company's balance sheet has the following capital section. Liang's stock is currently selling for $5 per share. Common Stock (50,000 shares at $1 par) $50,000 Capital in Excess of Par 50,000 Retained Earnings 100,000 $200,000 If Liang declared a 10% stock dividend instead of doing the stock split, what would the relevant section of the balance sheet look like?
The Peace River Corporation has 52,000 shares of stock outstanding at a market price of $41 a share. The company has just announced a stock split of five-for-three. How many shares of stock will be outstanding after the split?
B. Z Corporation has 1,000 shares of K20 par value common stock outstanding. The company is considering a 4 for 1 stock split. How will this affect the shareholders' equity accounts?
National Inc., a corporation that can only legally issue ordinary shares with par value, recently completed a 2-for-1 stock split on a stock that recently pays P15 dividend per share. The total legal capital of National Inc. is P31,000,000 and it has a total number of outstanding shares at 980,000. What is the new par value of each shares? a. 15.00 b. 7.50 c. 15.82 d. 31.63
When Harry Old's Corporation announces a 4-for-1 split down/reverse, it has 500,000 common stocks with a par value of USD50 on the market. The shares had a market price of USD100 per share prior to the split. Determine 1) the number of shares issued and 2) the par value of one common stock after the split.