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Kinmi Financial Corporation is the parent company of Kinmi Bank. The company's stock split was announced in the following wire:
At the time of the stock split, 37.5 million shares of common stock, $0.001 par per share, were outstanding. Required:
Problem 1. Prepare the journal entry, if any, that Kinmi recorded at the time of the stock split.
Problem 2. If Kinmi's stock price had been $49 at the time of the split, what would be its approximate value after the split (other things equal)?
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