Reference no: EM132783866

Questions -

Q1. A corporation, which had 28,700 shares of common stock outstanding, declared a 5-for-1 stock split.a. b. What will be the number of shares outstanding after the split?

If the common stock had a market price of $185 per share before the stock split, what would be an approximate market price per share after the split?

Q2. A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 5-for-1 stock split, the market value of the stock after the split will be approximately

a. $30

b. $150

c. $25

d. $5

Q3. Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:

Year 1: $10,000

Year 2: 45,000

Year 3: 90,000

Determine the dividends per share for preferred and common stock for the third year.

a. $2.00 and $0.25

b. $4.50 and $0.90

c. $4.50 and $0.25

d. $3.25 and $0.25