The owners\' equity accounts for Hexagon International are shown here: Hexagon d

Question

The owners' equity accounts for Hexagon International are shown here: Hexagon declares a four-for-one stock split. How many shares are outstanding now? (Do not round intermediate calculations.) Hexagon declares a four-for-one stock split. What is the new par value per share? (Do not round intermediate calculations and round your final answer to 3 decimal places, (e.g., 32.16)) Hexagon declares a one-for-five reverse stock split. How many shares are outstanding now? (Do not round intermediate calculations.) Hexagon declares a one-for-five reverse stock split. What is the new par value per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16))

Explanation / Answer

a-1. New shares outstanding = $ 46,000 / $ 0.50 par value x 4 = 368,000 shares

a-2. New par value per share = $ 0.50 / 4 = $ 0.125

b-1. New shares outstanding = $ 46,000 / $ 0.50 x 1 /5 = 18,400 shares

b-2. New par value per share = $ 0.50 x 5 = $ 2.50

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