On February 1, a corporation has 40000 shares of $ 1 par value common stock issued and outstanding. The corporation also has Additional Paid-in Capital of $ 200000 and Retained Earnings of $ 200000. On February 1, the corporation declared a 2-for-1 stock split. After the split, what is the total par value of the common stock and the total stockholders' equity, respectively?
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Ответ:
Par value is $0.5
Stockholder's Equity is $440,000
Explanation:
Stock split increase the numbers of shares with a specific given ratio but the common equity value remains same that's why the par value of the share decreases with respective ratio.
Before the split the balance in the Common Stock account was:
Common Stock = 40,000 shares x $1 = $40,000
After the split shares outstanding are (in billions):
2 for 1 split will double the Outstanding numbers of shares
Outstanding numbers of shares = 40,000 shares x 2/1 = 80,000 shares
After the split par value is:
Total value of stock remains same after the split
Par value = Total value / Outstanding numbers of shares after split
Par value = $40,000 / 80,000 = $0.5
After the split the balances are
Common Stock $40,000
Additional Paid-in Capital $200,000
Retained Earnings of $200,000
Total Equity $440,000
Balance total equity will remain same as $440,000 before
Ответ:
Which statement describes a potential pitfall of assessing group performance?
Members of a group may gang-up and unfairly focus their criticism on one person.
Explanation:
It is not one person that makes a group but more than one person(s), which makes it workable to assess their performance while criticizing one person's performance would jeopardize the chances of recording giant stride in such group.