The Owners' Equity Accounts for Blueswell Industries Are Shown Here

question 85

Multiple Choice

The owners' equity accounts for Blueswell Industries are shown here: If Blueswell Industries declares a 1-for-5 reverse stock split,there will be ____ shares outstanding at a par value of _____ per share.

• A)1,800; $1.00
• B)1,800; $5.00
• C)9,000; $5.00
• D)45,000; $0.20
• E)45,000; $1.00

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Definitions:

Dividends

are payments made by a corporation to its shareholders, typically from profits earned.

Tax Rate

The percentage of income that is paid to the government as tax.

Net Income

The amount of profit a company has left after all expenses, taxes, and costs have been subtracted from total revenue.