Common Stock ($1 par value) $30,000
Capital surplus 185,000
Retained Earnings 627,500
Total Owners Equity 842,500
A.) If Hexagon stock currently sells for $37 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
B.) If Hexagon declared a 25 percent stock dividend, how would the accounts change?
Stock Splits
Show how the equity accounts will change if:
a.) Hexagon declares a four for four stock split. How many shares are outstanding now? What is the par valu per share?
b.) Hexagon declares a four for five reverse split. How many shares are outstanding now? What is the new par value per share?