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Common stock ($1 par value) $380,000...

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Common stock ($1 par value) $380,000 Capital Surplus 1,750,000 Retained earnings 4,150,000 Total Owners' Equity $6,280,000 Part A: The company with the common equity accounts shown here has declared a 12% stock dividend when the market value of the stock is $45 per share. What effects on the equity accounts will the distribution of the stock dividend have? Part B: Suppose the company instead decides on a 5 for 1 stock split. the firm's 60 cent per share cash dividend on the new (post split) shares represents an increase of 10% over the last year's dividend on the pre split stock. What effect does this have on the equity accounts? What was last year's dividend per share?

 

Paper#2494 | Written in 18-Jul-2015

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