The number of shares will double but the price per

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Unformatted text preview: e company’s overall market should not change simply because of the share split. The number of shares will double but the price per share will be cut in half. Sometimes company’s that announce a share split see their stock price rise because many investors see a share split as a positive sign from management but this shareholder action is inferring positive news that has not been announced. BE12–3 a. During 2007 the company paid an average of $51.65 per share in its repurchase program ($1,756/34). b. During 2008 the company paid an average of $58.00 per share in its repurchase program ($1,044/18). c. With no information regarding 2010 treasury purchases, the balance in the treasury stock account will be $24,198 ($25,398 ­ $1,200) . EXERCISES E12–1 a.,b.,c. Effect on Effect on Total Accounts (2 ) (3 ) (4 ) (5 ) (6 ) Stockholders' Equity Common Stock Additional Paid­In Capital, C/S None Treasury Stock Common Stock Additional Paid­In Capital, C/S Retained Earnings Treasury Stock Additional Paid­In Capital, T/S None (1 ) Account Increase Increase N/A Increase Increas...
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