Robinson's Has 15,000 Shares Outstanding with a Par Value of £1.00

question 46

Multiple Choice

Robinson's has 15,000 shares outstanding with a par value of £1.00 per share and a market price of £36 a share.The statement of financial position shows £15,000 in the ordinary equity account,£315,000 in the additional paid in capital account,and £189,000 in the retained earnings account.The firm just announced a 3-for-2 stock split.What will the value of the ordinary equity account be after the split?

• A)£10,000
• B)£12,500
• C)£15,000
• D)£18,500
• E)£22,500

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Definitions:

Pattern of Labor

Refers to the distribution of work roles, responsibilities, and divisions within a society or an organization.

Equal Value

the principle that different people, items, or activities are of the same worth and deserve equitable treatment.

Division of Labor

The allocation of different tasks to different people or entities based on specialization, aiming to increase efficiency in production or services.

Cultural Evolution

The gradual development of society and culture over time, driven by adaptation, innovation, and transmission of knowledge and behaviors.