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The company declares a three-for-one stock split. How many shares are outstandin

ID: 2804594 • Letter: T

Question

  

  

The company declares a three-for-one stock split. How many shares are outstanding now? (Do not round intermediate calculations.)

  

The company declares a three-for-one stock split. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

  

  

The company declares a one-for-four reverse stock split. How many shares are outstanding now? (Do not round intermediate calculations.)

    

  

The company declares a one-for-four reverse stock split. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

The owners’ equity accounts for Hexagon International are shown here:

Explanation / Answer

Originally there are $ 30,000 / $ 0.60 = 50,000 shares of common stock.

a-1. After the three-for-one stock split :

a-2.

b-1.

b-2.

New shares outstanding 150,000