A firm had the following balance sheet: Assets Liabilities and Equity Cash $20,000 Accounts Payable...
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A firm had the following balance sheet: Assets Liabilities and Equity Cash $20,000 Accounts Payable $20,000 Accounts Receivable $110,000 Long-Term Debt $100,000 Inventory $120,000 Common Stock ($8 par; 4000 shares) $32,000 Plant and Equipment $250,000 Additional paid-in-capital $148,000 Retained Earnings $200,000 $500,000 $500,000 a) Construct a new balance sheet showing the impact of a 3-for-1 split. If the current market price of the stock is $54, what is the price after the split? b) Construct a new balance sheet showing the impact of a 10% stock dividend. After the stock divined, what is the new price of the common stock?
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