Reference no: EM132699854
You have just obtained your MBA and obtained your dream job with a large corporation as a manager trainee in the corporate accounting department. Your employer plans to offer a 3-for-1 stock split. The stock has been selling for a market price of $300.00
Requirement.
Question 1: Briefly indicate the accounting entries necessary to recognize the split in the company's accounting records.
Question 2: Explain the effect the split will have on the company's balance sheet.
Question 3: -Discuss the effects of the stock price the day after the stock split
Question 4: Amazon stock is currently selling at over $3,000 per share (Amazon) ( )?
Question 5: What is your Amazon stock worth if you own 100 shares? (Assume $3,000 per share)?
Question 6: Assume Amazon has a 6 to one stock split.
Question 7: How many Amazon stock would you now own?
Question 8: What would your stock be worth immediately after the split? (Assume no other market factors other than the split.)
Attachment:- Amazon.zip