ressive Services, Inc has just decared7 forstock silit. The company\'sgrecm stoc

Question

ressive Services, Inc has just decared7 forstock silit. The company'sgrecm stockholders' equity was as follows: Common stockS1.25 par, 2,000,000 shares) Contributed capital in excess of par Retained earnings Total common stockholders' equity 2,500,00 s 17,566, 202,100,0 If the pre-split price of common stock was 0, split? what will be the amount of retained eningsdu- (b) ABC Inc. has th e following current equity accounts on its balance sheet: 1,250,000 $10,000,000 Common stock ($2.50 par, 500,000 shares) Contributed capital in excess of par Retained earnings Total $37,000,000 If ABC earned $5.00 per share this year, what is the maximum dividend per share that ABC may the state capital impairment provisions are limited to the par value and the contributed capital it par accounts?

Explanation / Answer

a) In stock split case Share capital value and retained earnings all are remain same...

so in this question retained earnings is 182100000 before stock split...

so in the end (after stock split) retained earnings will be 182100000

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