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Wilson Pharmaceuticals’ stock has done very well in the market during the last three years. It has risen from $45 to $70 per share. The firm’s current statement of stockholders’ equity is as follows:
Common stock (4 million shares issued at par value of $10 per share) $ 40,000,000
Paid-in capital in excess of par 16,000,000
Retained earnings 44,000,000
Net worth $ 100,000,000
Required:
a-1. How many shares would be outstanding after a two-for-one stock split?a-2. What would be its par value?b-1. How many shares would be outstanding after a three-for-one stock split?b-2. What would be its par value?
Answers: 3
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Wilson Pharmaceuticals’ stock has done very well in the market during the last three years. It has...
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