At what share price should the common stock sell after

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Reference no: EM132068301

The Klingon Fastener Company has the following shareholders' equity account:

Common stock ($8 par value)	$ 2,000,000
Additional paid-in capital	1,600,000
Retained earnings	8,400,000
Total shareholders' equity	$12,000,000

The current market price of the stock is $60 per share.

a. What will happen to this account and to the number of shares outstanding with (1) a 10 percent stock dividend? (2) a 2-for-1 stock split? (3) a 1-for-2 reverse stock split?

b. In the absence of an informational or signaling effect, at what share price should the common stock sell after the 10 percent

Reference no: EM132068301

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