Question

The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 39-cent-per-share cash dividend on the new (postsplit) shares represents an increase of 5 percent over last year’s dividend on the presplit stock.

Common stock ($1 par value)	$	450,000
Capital surplus		1,553,000
Retained earnings		3,874,000
Total owners’ equity	$	5,877,000

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

Dividends per share last year            $

Answer 1