Owners equity accounts for alexander international

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Reference no: EM131893868

The owners’ equity accounts for Alexander International are show below:

Common Stock ($.50 par value, 40,000 shares outstanding)$ 20,000

Capital Surplus 285,000

Retained Earnings 638,120

Total Owners’ Equity$ 933,120

1. If Alexander International’s stock sells for $30 per share, and if a 10% stock dividend is declared, How many new shares will be distributed?

2. How would the equity accounts change in “A” above?

Now, assume that, instead of a stock dividend, the company declares a 4-for-1 stock split.

1. How many shares will be outstanding?

2. What is the new par value per share?

Now, assume that, instead of a stock dividend or a stock split, the company declares a 1-for-5 reverse stock split.

1. How many shares will be outstanding?

2. What is the new par value per share?

Reference no: EM131893868

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