Listed below is the current data for ABC Company:
ABC Company
Balance Sheet
December 31, 20xx
Assets
Liabilities and Equity
Cash
$10,000,000
Accounts Payable
$20,000,000
Accounts Receivable
250,000,000
Long-term debt
400,000,000
Inventory
120,000,000
Common Stock ($10 par, 1,000,000 outstanding)
10,000,000
Plant and Equipment
325,000,000
Paid-in capital
90,000,000
Retained Earnings
185,000,000
Total
$705,000,000
Total
$705,000,000
The current price of a stock is $58 per share.
Required:
Construct a balance sheet after a two for one stock split. What will be the new price of the stock? (Problem 1 tab)
Construct a balance sheet after a 5% stock dividend. What is the new price of the stock? (Problem 2 tab)
Construct a balance sheet after a one for two reverse stock split. What is the new price of the stock? (Problem 3 tab)
Construct a balance sheet after a $3 per share cash dividend. What is the total cash dividend? (Problem 4 tab
