The owners? equity accounts for Alexander International are shown here. a-1 If A

Question

The owners? equity accounts for Alexander International are shown here. a-1 If Alexander declares a two-for-one stock split, how many shares are outstanding now? New shares outstanding a-2 What is the new par value per share? (Round your answer to 3 decimal places. (e.g., 32.161)) New parvalue $ pershare b-1 If Alexander declares a one-for-four reverse stock split, how many shares are outstanding now? New shares outstanding b-2 What is the new par value per share? (Round your answer to 2 decimal places. (e.g., 32.16)) New parvalue $ pershare check mv work references ebook & resources

Explanation / Answer

Two for one stock Split:

Answer: a-1:

Current outstanding number of shares = Common Stock Value / Par value per share = 27500 / 0.40 = 68750 Shares

New outstanding number of shares (After Split) = 68750 *2 = 137500 Shares

Answer-a-2:

New par value per share = old Par value per share / 2 = 0.40 /2 = $0.20 Per share

One for Five reverse stock Split:

Answer-b-1:

Current outstanding number of shares = Common Stock Value / Par value per share = 27500 / 0.40 = 68750 Shares

New outstanding number of shares (After Split) = 68750 /5 = 13750 Shares

Answer-b-2:

New par value per share = old Par value per share / 2 = 0.40*5 = $ 2 Per share

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