Immediately Before a 3-For-1 Stock Split Was Declared and Distributed

question 30

Essay

Immediately before a 3-for-1 stock split was declared and distributed on 20,000 shares of par $80 stock, Mikah Company has total liabilities of $260,000 and total shareholders' equity of $320,000. Calculate Mikah Company's debt/equity ratio immediately after the stock split.

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Definitions:

Permeability

The capacity of a material or membrane to allow fluids or gases to pass through it.

Glomerular Filtrate

The fluid that is filtered from the blood through the glomeruli into the Bowman's capsule in the kidneys, initiating urine formation.

Red Blood Cells

The cells in blood responsible for carrying oxygen throughout the body, using the protein hemoglobin to transport oxygen.

Kidney Damage

Harm or impairment of kidney function, which can result from various causes including disease, infection, or physical injury.