The primary purpose of a stock split is to:
a. reduce the market price of the stock per
b. increase the market price of the stock per share.
c. increase retained earnings.
d. increase paid-in capital.
Vivi Corporation had net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10 par stock). The market price per share as of December 31, 2015, was $33.50. Calculate the price-earnings ratio for 2015.
On January 1, a shareholder purchased 81 shares of stock in Beta company for $115 per share. On August 20, the company paid an $8 dividend per share. On December 31, the shareholder sold all the shares for $113 per share. What is the overall Economic Rate of Return for this investment?
Emerald Co. has 50,000 shares at $12 par common stock outstanding. If the company decides to declare a 2-to-1 stock split, the total stockholders' equity will:
a. increase by $300,000
b. increase by $600,000
c. not change
d. decrease by $50,000