What will happen to the company market-value balance sheet

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Question - A balance sheet showing the starting conditions before equity issuance: Assets Liabilities and Net Worth

Cash $100 $60 Debt

Operating Assets $100 $140 Equity

100 outstanding shares at $1.40 per share

Let's say the company decides to split its stock two-for-one. In other words, for every share of stock that an investor currently holds, they will now hold two shares. What will happen to the company's market-value balance sheet, and what will happen to the value of its shares?

Reference no: EM133088344

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