The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors wish to reduce the share price
and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. 9 million shares are issued and outstanding. Instructions Prepare the necessary journal entries assuming the following. The board votes a 2-for-l stock split. The board votes a 100% stock dividend. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.
1 answer:
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Answer:
The answer is "5.4% and 15,23,500".
Explanation:
Calculating the capital cost:
Maximum amount to be spent