Determining Effects of Stock Splits Oracle Corp has had the following stock splits since its inception. Effective Date Split Amount October 12, 2000 2 for 1 January 18, 2000 2 for 1 February 26, 1999 3 for 2 August 15, 1997 3 for 2 April 16, 1996 3 for 2 February 22, 1995 3 for 2 November 8, 1993 2 for 1 June 16,1989 2 for 1December 21, 1987 2 for 1 March 9, 1987 2 for 1 If the par value of Oracle shares was originally $1, what would Oracle Corp. report as par value per share on its 2015 balance sheet

Original = $1. March 9, 1987 = $0.5. December 21, 1987 = $0.25. June 16, 1989 = $0.125. November 8, 1993 = $0.0625. February 22, 1995 = $0.0417. April 16, 1996 = $0.028. August 15, 1997 = $0.019. February 26, 1999 = $0.012. January 18, 2000 = $0.0062. October 12, 2000 = $0.0031.

Explanation:

The per value of the original = $1 and there is no split amount.

The split amount on March 9, 1987 is 2 for 1 and the per value is 1/2 = $0.5.

The split amount on December 21, 1987 is 2 for 1 and the per value is 0.5/2 = $0.25.

The split amount on June 16, 1989 is 2 for 1 and the per value is 0.25/2 = $0.125.

The split amount on November 8, 1993 is 2 for 1 and the per value is = 0.125/2 = $0.0625.

The split amount on February 22, 1995 is 3 for 2 and the per value is = 0.0625 * (2/3) = $0.0417.

The split amount on April 16, 1996 is 3 for 2 and the per value is = 0.0417 * (2/3) = $0.028.

The split amount on August 15, 1997 is 3 for 2 and the per value is = 0.028 * (2/3) = $0.019.

The split amount on February 26, 1999 is 3 for 2 and the per value is = 0.019 * (2/3) = $0.012

The split amount on January 18, 2000 is 2 for 1 and the per value is = 0.012/2 = $0.0062.

The split amount on October 12, 2000 is for 2 for 1 and the per value is = 0.0062/2 = $0.0031.