Question

Declared semiannual dividends of $1.20 on 75,000 shares of preferred stock and $0.08 on the 600,000 shares of $20 par common stock to stockholders of record on March 31, payable on April 30.

Answer 1

Split common stock 4 to 1 and reduced PAR from $80 to $20. After the split there were 600,000 shares.