Question

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value...

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

a.$112.00

b.$37.50

c.$600.00

d.$7.00

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Your required answer is option B i.e. $37.50

Explanation:

Stock split is the situation when a company issue shares to it's existing shareholders. In this question company is issuing 4 shares for every 1 shares.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A corporation has 71,432 shares of $28 par stock outstanding that has a current market value...
A corporation has 71,432 shares of $28 par stock outstanding that has a current market value of $256 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately
Richmond Corporation has 50,000 shares of 20 par value common stock outstanding. The current fair market...
Richmond Corporation has 50,000 shares of 20 par value common stock outstanding. The current fair market value of its stock is 32 per share. The Corporation splits its common stock on a 4 for 1 basis. After the split, the par value per share is
MULTIPLE CHOICE: PLEASE ANSWER ASAP. THANK YOU! 13. Texas Inc. has 10,000 shares of 7%, $125...
MULTIPLE CHOICE: PLEASE ANSWER ASAP. THANK YOU! 13. Texas Inc. has 10,000 shares of 7%, $125 par value cumulative preferred stock and 97,000 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock? a.$6,790 in total b.$87,500 in total c.$0.01 per share d.$70.00 per share 15. A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporation issues...
Nexis Corp. issues 2,470 shares of $11 par value common stock at $16 per share. When...
Nexis Corp. issues 2,470 shares of $11 par value common stock at $16 per share. When the transaction is recorded, credits are made to a.Common Stock, $12,350 and Retained Earnings, $27,170. b.Common Stock, $12,350 and Paid-In Capital in Excess of Stated Value, $27,170. c.Common Stock, $39,520. d.Common Stock, $27,170, and Paid-In Capital in Excess of Par—Common Stock, $12,350. A corporation has 43,671 shares of $32 par stock outstanding that has a current market value of $300 per share. If the...
9. The Peanut Shack has 3,500 shares of stock outstanding with a par value of $1...
9. The Peanut Shack has 3,500 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $178,200. The company just announced a stock split of seven-for-three. What will be the market price per share after the split? Please show work.
Alfonzo's Italian House has 17,000 shares of stock outstanding with a par value of $1 per...
Alfonzo's Italian House has 17,000 shares of stock outstanding with a par value of $1 per share and a market price of $24.60 a share. The firm just announced a stock split of three- for-two. What will be the market price per share after the split? A) $16.40 B) $18.60 C) $28.20 D) $24.60 E) $36.90
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following...
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following transactions: Purchased 400 shares of its own $2 par value common stock for $ 20 per share. Sold 150 shares of treasury stock purchased in (a) for $22 per share. Sold 100 shares of treasury stock purchased in (a) for $20 per share. Sold the remaining 150 shares of treasury stock purchased in (a) for $16 per share.
Thompson Co. has 75,000 shares of $4 par value stock outstanding (total legal capital of $300,000)....
Thompson Co. has 75,000 shares of $4 par value stock outstanding (total legal capital of $300,000). If Thompson splits the stock 2-for-1, what will be the par value of each share after the split? A)$2 B)$4 C)$8 D)$16 Edson Co. purchased 100 shares of treasury stock for $50 per share. The company later sold the shares for $55 per share. The entry to record the sale of the shares would include a a. credit to Paid-in Capital from Treasury Stock...
4)  Wedge Corporation has the following capital stock outstanding: Common stock, par $1, with 250,000 shares outstanding...
4)  Wedge Corporation has the following capital stock outstanding: Common stock, par $1, with 250,000 shares outstanding for a total par value of $250,000. 8% preferred stock, par $100, with 5,000 shares outstanding, cumulative, for a total par value of $500,000.  They have not received dividends in 2 years prior to this current year.              Part A:             A cash dividend of $150,000 was declared and paid near the end of the current year. Calculate, showing supporting calculations, the current year’s dividend and...
Rock Corporation has the following shares outstanding: 8,000 shares of $70 par value, nine percent preferred...
Rock Corporation has the following shares outstanding: 8,000 shares of $70 par value, nine percent preferred stock and 50,000 shares of $4 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $6.30 per share cash dividend on the preferred stock and a $5.60 per share cash dividend on the common stock. Two weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividends....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT