Ask Question
BusinessBusiness
16 February, 03:31

On June 5, 2019, ABC Inc. instituted a 4-for-1 stock split. Before the split, ABC Inc. had 200,000 shares outstanding with a price of $168 per share. Show that the stock split for ABC Inc. was a monetary non-event.

+1
Answers (1)
  1. 16 February, 06:04
    0
    Post split Shares: 800,000

    Post split par value: $42

    Explanation:

    Given:

    Number of out standing shares: 200,000 Price per share: $168

    ABC Inc. instituted a 4-for-1 stock split, it means that every holder of 1 share will receive 4 shares. So the total of outs standing stock will be increased 4 time, which is:

    200,000*4 = 800,000 shares

    The price of a split stock is calculated by dividing the face value of the proposed share:

    $168 / 4 = $42 per share

    So:

    Post split Shares: 800,000 Post split par value: $42
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On June 5, 2019, ABC Inc. instituted a 4-for-1 stock split. Before the split, ABC Inc. had 200,000 shares outstanding with a price of $168 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the:A) Going-concern assumption.
Answers (1)
The following data apply to Garber Industries, Inc. (GII) : Value of operations $1,000 Short-term investments $100 Debt $300 Number of shares 100 The company plans on distributing $100 as dividend payments.
Answers (1)
Jamison Company has the following obligations at December 31: For each obligation, indicate whether it should be classified as a current liability. (Assume an operating cycle of less than one year.) a. A note payable for $100,000 due in 2 years. b.
Answers (1)
Rupert runs his own company and does all the hiring personally to ensure. Fit with the rest of the organization he's built, wich type of question is he most likely to use?
Answers (1)
You are considering purchasing a new home. You will need to borrow $ 200 comma 000 to purchase the home. A mortgage company offers you a 20 -year fixed rate mortgage (240 months) at 12 % APR (1 % month).
Answers (1)
New Questions in Business
A qualification that might ordinarily be argued as being a basis for discrimination, but a company can show is job related and necessary is called a a. real and necessary distinction. b. quasi-discriminatory factor. c.
Answers (1)
Rasheed can afford a monthly car payment of $600 for 5 years at an annual interest rate of 4 percent. Which of the following is closest to the amount he will be able to borrow for a new car? Remember, loans are END of period.
Answers (1)
Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.
Answers (1)
If the consumer price index was 170 in one year and 180 in the next year, then the rate of inflation is approximately:
Answers (2)
Deitz Corporation is projecting a cash balance of $30,600 in its December 31, 2019, balance sheet. Deitz's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $188,700.
Answers (1)
Home » Business » On June 5, 2019, ABC Inc. instituted a 4-for-1 stock split. Before the split, ABC Inc. had 200,000 shares outstanding with a price of $168 per share. Show that the stock split for ABC Inc. was a monetary non-event.
Sign Up Forgot Password?