Jean's Warehouse has 16,000 shares of stock outstanding. The current market value of the firm is $768,000

Jean's Warehouse has 16,000 shares of stock outstanding. The current market value of the firm is $768,000. The company has retained earnings of $130,000, paid in surplus of $321,000, and a common stock account value of 16,000. The company is planning a 5-for-3 stock split. What will the retained earnings account value be after the split?    A.  $73,800 B.  $130,000 C.  $153,600 D.  $205,000 E.  $245,500 The retained earnings will remain at $130,000 as a stock split does not affect the balance.

84.

The common stock of Checkers, Inc. is selling for $56 a share and the par value per share is $1. Currently, the firm has a total market value of $812,000. How many shares of stock will be outstanding if the firm does a 3-for-2 stock split?    A.  9,667 shares B.  12,500 shares C.  14,500 shares D.  17,750 shares E.  21,750 shares Number of shares = ($812,000/$56) × 3/2 = 21,750 shares

85.

The common stock of Gillen Entertainment is selling for $65 a share. The par value per share is $1. Currently, the firm has a total market value of $936,000. How many shares of stock will be outstanding if the firm does a 5-for-2 stock split?    A.  4,800 shares B.  9,600 shares C.  18,000 shares D.  36,000 shares E.  32,200 shares Number of shares = ($936,000/$65) × 5/2 = 36,000 shares

86.	Purvis Lawn Products has 18,000 shares of stock outstanding at a market price of $5.50 a share. What will the market price per share be if the company does a 1-for-4 reverse stock split?    A.  $1.38 B.  $5.50 C.  $11.00 D.  $16.50 E.  $22.00 Market price = $5.50 × 4/1 = $22