Monica1966
Jul 19, 2011, 06:04 AM
I have a question on transaction for common stock
If I have 10,000 shares of $10 par value common stock,Authorized and outstanding.Company wants to call in the $10 par value stock and replace each share with two shares of new $5 par value common stock issue. This transaction will increase
1. the number of shares outstanding
2. the total stockholders equity
3. retained earings
4. stock dividends distributable
I read over all my text and the only one I come up with that would be right is a. the number of shares outstanding
Could anyone tell me if I am doing this right
Thanks
If I have 10,000 shares of $10 par value common stock,Authorized and outstanding.Company wants to call in the $10 par value stock and replace each share with two shares of new $5 par value common stock issue. This transaction will increase
1. the number of shares outstanding
2. the total stockholders equity
3. retained earings
4. stock dividends distributable
I read over all my text and the only one I come up with that would be right is a. the number of shares outstanding
Could anyone tell me if I am doing this right
Thanks