The company with common equity accounts

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Reference no: EM131613917

The company with the common equity accounts shown here has declared a 5-for-one stock split when the market value of its stock is $31 per share. The firm’s 70-cent per share cash dividend on the new (postsplit) shares represents an increase of 25 percent over last year’s dividend on the presplit stock.

Common stock ($1 par value) $ 405,000

Capital surplus 850,000

Retained earnings 3,760,800

Total owner's equity $ 5,015,800

What is the new par value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

New par value $ per share

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

Dividend per share $

Reference no: EM131613917

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