Question

4-13 Stock split: Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock $ 400,000 Common stock (600,000 shares at $3 par) 1,800,000 Paid-in capital in excess of par 200,000 Retained earnings 800,000 Total stockholders' equity $3,200,000 a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split. b. Indicate the change, if any, expected if the firm declares a 1-for-1½ reverse stock split. c. Indicate the change, if any, expected if the firm declares a 3-for-1 stock split. d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split. e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split.

          4-13 Stock split: Firm Growth Industries' current stockholders' equity account is as follows:

Preferred stock $ 400,000
Common stock (600,000 shares at $3 par) 1,800,000
Paid-in capital in excess of par 200,000
Retained earnings 800,000
Total stockholders' equity $3,200,000

a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split.
b. Indicate the change, if any, expected if the firm declares a 1-for-1½ reverse stock split.
c. Indicate the change, if any, expected if the firm declares a 3-for-1 stock split.
d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split.
e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split.

4-13 Stock split: Firm Growth Industries' current stockholders' equity account is as follows:

Preferred stock 400,000
Common stock (600,000 shares at3 par) 1,800,000
Paid-in capital in excess of par 200,000
Retained earnings 800,000
Total stockholders' equity 3,200,000

a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split.
b. Indicate the change, if any, expected if the firm declares a 1-for-1½ reverse stock split.
c. Indicate the change, if any, expected if the firm declares a 3-for-1 stock split.
d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split.
e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split.

Added by Joseph B.

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