1. On the corporation's balance sheet, the par value of the stock is $2, and Total owners' equity is $1,000,000.
If the corporation has a "2-for-1" stock split, what will these values be AFTER the split?
a. The par value of the stock is $1, and Total owners' equity is $1,000,000.
b. The par value of the stock is $4, and Total owners' equity is $1,000,000.
c. The par value of the stock is $1, and Total owners' equity is $500,000.
d. The par value of the stock is $1, and Total owners' equity is $2,000,000.
2. Which of the following is true of Diamond, a firm that has a dividend payout ratio = 100%?
Earnings Per Share / Dividends per share = 50%
Earnings Per Share / Dividends per share = 0%
Earnings Per Share / Dividends per share = 100%
None of the Above