The company with the common equity accounts shown here has decided on a two-for-
ID: 2724102 • Letter: T
Question
The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 45-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.
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).)
The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 45-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.
Explanation / Answer
1 new par value(1/2) 0.5 2 last yeas's dividend(0.45*0.5*410000*2)/(1.05*410000) 0.428571