The company with the common equity accounts shown here has decided on a two-for-

Question

The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm's 44-cent-per-share cash dividend on the new (postsplit) shares represents an increase of 20 percent over last year's dividend on the presplit stock. What is the new par value of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) What was last year's dividend per share? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

1. par vale =$1/2= $0.50

2.lst year dividend=(2*0.44)/1.2=0.88/1.2= 0.73333

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