Consider the following data: Amount ($) Common stock ($1 par value) - 400,000 Capital surplus - 900,000 Retained earnings 5,000,000 TOTAL OWNERS’ EQUITY 6,300,000 Current market price of shares = $51 per share. What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend.
Consider the following data: Amount ($) Common stock ($1 par value) - 400,000 Capital surplus - 900,000 Retained earnings 5,000,000 TOTAL OWNERS’ EQUITY 6,300,000 Current market price of shares = $51 per share. What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend.
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5P
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Consider the following data:
Amount ($)
Common stock ($1 par value) - 400,000
Capital surplus - 900,000
TOTAL OWNERS’ EQUITY 6,300,000
Current market price of shares = $51 per share.
What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend.
*Show manual workings. No Excel. You can type calculator inputs and outputs.
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