Problem : Stock Splits
The company with the common equity accounts shown here has declared a 5-for-one stock split when the market value of its stock is $32 per share. The firm's 80-cent per share cash dividend on the new (postsplit) shares represents an increase of 25 percent over last year's dividend on the presplit stock.
| Common stock ($1 par value) |
$ |
410,000 |
| Capital surplus |
|
851,000 |
| Retained earnings |
|
3,770,800 |
|
|
|
| Total owner's equity |
$ |
5,031,800 |
What is the new par value per share? (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.)