Manson World reported the following: Common stock, $1 par, 200,000 shares authorized, 100,000 shares issued and outstanding What is the effect of a 2-for-1 stock split if the market value of the common stock is $20 per share when the stock split is declared?
a. Retained earnings in the amount of $400,000 is transferred to the contributed capital accounts.
b. Cash decreases $400,000.
c. Additional Paid-in Capital increases $400,000.
d. A stock split has no effect on total stockholders' equity.
d
You might also like to view...
The _____ approach assumes that the life of an IS starts with a need, followed by an assessment of the functions that a system must have to fulfill that need, and ends when the benefits of the system no longer outweigh its maintenance costs.
Fill in the blank(s) with the appropriate word(s).
Procedures for examining differences between more than two means are called ________
A) paired samples t-tests B) analysis of variance C) factor analysis D) distribution of variance E) canonical correlation
An assessment of which of the following would be MOST likely to appear in the marketing situation of a marketing plan?
A) the marketing mix B) the break-even point C) the cultural environment D) an implementation schedule E) the company's mission
An informational Web site provides opportunities for the customers and the business to communicate and share information
Indicate whether the statement is true or false