Decided on a two-for-one stock split

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Reference no: EM131530967

The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 38-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.

Common stock ($1 par value) $ 460,000

Capital surplus 1,554,000

Retained earnings 3,876,000

Total owners’ equity $ 5,890,000

a. What is the new par value of the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

New par value $ per share

b. What was last year’s dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Dividends per share last year $

Reference no: EM131530967

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