On December 1, Gilligan Ltd

question 63

Short Answer

On December 1, Gilligan Ltd.declared a 2 for 1 stock split when the market value was $40 per share.Prior to the split, there were 200,000 shares issued and outstanding.After the stock split, the number of shares outstanding and the share capital balance were: $\begin{array}{ll}\text { Shares }&\text { Capital }\\\text { a. } 200,000 & \$ 8,000,000 \\\text { b. } 200,000 & \$ 4,000,000 \\\text { c. } 400,000 & \$ 8,000,000 \\\text { d. } 400,000 & \$ 4,000,000\end{array}$

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Public

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Venture Capital Groups

Organizations that provide funding to startups or small businesses with high growth potential in exchange for equity.

Seed Capital

Seed Capital is the initial funding used to start a business, often provided by angel investors, friends, family, or the founders themselves, crucial for getting the venture off the ground before it can generate its own cash flow.

Startup Capital

Funds that are required to start a new business, typically used for initial operational costs.