Western Mountain Water has 11,000 shares of stock outstanding with a par value of $1 per share

The Peanut Shack has 6,5000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $145,600. The company just announced a 3-for-2 stock split. What will the market price per share be after the split?    A.  $12.14 B.  $14.93 C.  $16.18 D.  $28.20 E.  $36.40 Market price per share = ($145,600/6,500) × 2/3 = $14.93

78.

Western Mountain Water has 11,000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $135,000. The balance sheet shows a capital in excess of par value account balance of $68,000 and retained earnings of $49,000. The company just announced a 2-for-1 stock split. What will the capital in excess of par value account balance be after the split?    A.  $45,333 B.  $54,667 C.  $68,000 D.  $86,667 E.  $102,000 The paid in surplus account will remain at $68,000 as a stock split has no effect on this account.

79.

The Peace River Corporation has 62,000 shares of stock outstanding at a market price of $48 a share. The company has just announced a 3-for-2 stock split. How many shares of stock will be outstanding after the split?    A.  41,333 shares B.  54,333 shares C.  89,333 shares D.  93,000 shares E.  100,500 shares Number of shares = 62,000 × 3/2 = 93,000 shares