4. An entity showed the following data: Share capital, par value P50 5,000,000 Share premium 200,000 Retained Earnings 2,000,000 Market value of share on declaration date 75 Market value of share on distribution date 85 Treat each item independently: e. If the entity would declare a 2 for 1 share split, How much would be the new par value?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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4. An entity showed the following data:
Share capital, par value P50 5,000,000
Share premium 200,000
Retained Earnings 2,000,000
Market value of share on declaration date 75
Market value of share on distribution date 85
Treat each item independently:

e. If the entity would declare a 2 for 1 share split, How much would be the new par value? 

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