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Which of the following statements is not true about a 4-for-1 split?

a. Market price per share will decrease

b. Par value is reduced to _ of what it was before the split.

c. Total stockholders' equity will increase.

d. The number of shares issued is equal to 4 times the amount it was before the split.

 

 

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Reid Wolff
Reid WolffLv2
18 May 2020

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Which of the following statements is not true about a 2-for-1 split?

a. Par value per share is reduced to half of what it was before the split.

b. The market value of the stock will probably decrease.

c. Total paid-in capital increases.

d. A stockholder with 5 shares before the split owns 10 shares after the split.

Magnum Company, which had 45 000 of its ordinary sharesoriginally issued at $3 now has a 3-for-1 share split.

The market price of the share was $30 per share before thesplit.

Which of the following is true as a result of the split?

The contributed capital does not change

The balance in the ordinary shares account increased to $135000

The market price of the share was not affected

There were 15 000 ordinary shares on issue after the split
The following items were shown on the balance sheet of FreelanderCorporation on 12/31/2009:
Stockholders' Equity
Paid in Capital
Common stock, $5 par value, 10,000,000 shares
authorized; ___shares issued and ____outstanding $ 20,000
Additional paid-in capital in excess of par value 5,000
Total paid-in capital $ 25,000
Retained Earnings $ 8,000
Total paid-in capital and retained earnings $ 33,000
Less: Treasury stock (800 shares) $ (6,400)
Total stockholders' equity $ 26,600

1) The number of shares of common stock issued were______________

2) The number of shares of common stock outstanding are_____________

3) The average issue price of the common stock was____________________

4 The average cost per share of the treasury stock was______________________

5) A $0.15 per share dividend is declared, how much will thedividend payable be? ________________

6) If a company had 10,000 shares issued and outstanding with a parvalue of $2; answer the following questions if the company declareda 4 for 1 stock split:
a. What is the dollar amount of common stock before thesplit?

b. What would be the outstanding share after the split?

c. What would be the par value after the split?

d. What is the dollar amount of common stock after the split?

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