Golden Valley Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. olders equityesBeforeAction$1,269,000 $$232,000 $657,000380,0001,037,000$1.269,000300,000$After CashDividend$+A$$After StockDividend$$AfterStock Split21°C Partly cloudyENG Total assetsTotal liabilitiesShareholders' equityCommon sharesRetained earningsTotal shareholders' equityTotal liabilities and shareholders equityNumber of common shares.Type here to searchf3f4Bf5BeforeAction$1,269,000 $$232,000657,000380.0001,037.000$1.269.000100,000144$$f7After CashDividendf8Df9$$f10After StockDividend21°C Partly cloudy$inser

Introduction Cash Dividend: A cash dividend is a payment made from the firm's current income or…

Answered: Before Action $1,269,000 $ equity…

Before Action $1,269,000 $ equity $232,000 657,000 380,000 1,037,000 $1269,000 300,000 $ $ After Cash Dividend $ $ After Stock Dividend $ $ After Stock Split 21°C Partly cloudy

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5CE

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Golden Valley Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share.

olders equity
es
Before
Action
$1,269,000 $
$232,000 $
657,000
380,000
1,037,000
$1.269,000
300,000
$
After Cash
Dividend
$
+A
$
$
After Stock
Dividend
$
$
After
Stock Split
21°C Partly cloudy
ENG

Total assets
Total liabilities
Shareholders' equity
Common shares
Retained earnings
Total shareholders' equity
Total liabilities and shareholders equity
Number of common shares.
Type here to search
f3
f4
B
f5
Before
Action
$1,269,000 $
$232,000
657,000
380.000
1,037.000
$1.269.000
100,000
144
$
$
f7
After Cash
Dividend
f8
D
f9
$
$
f10
After Stock
Dividend
21°C Partly cloudy
$
inser

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