Jensen's Has 18,000 Shares of Stock Outstanding with a Par

question 67

Multiple Choice

Jensen's has 18,000 shares of stock outstanding with a par value of $1 per share and a market price of $32.30 a share.The balance sheet shows $18,000 in the common stock account,$109,600 in the capital in excess of par value account,and $78,200 in the retained earnings account.The firm just announced a stock split of five-for-three.What will be the balance in the capital in excess of par value account after the split?

• A)$138,700
• B)$94,560
• C)$458,200
• D)$109,600
• E)$458,440

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Definitions:

Evolutionary Process

The gradual development of organisms and species over time through mechanisms such as natural selection and genetic drift.

Cultural Evolution

The process by which societies and cultures change over time, including changes in beliefs, practices, technologies, and social structures.

Natural Selection

A process by which organisms better adapted to their environment tend to survive and produce more offspring.

Charles Darwin

A British naturalist and biologist known for his theory of evolution and the process of natural selection.