Consider the following data: Common stock ($1 par value): $400,000 Capital surplus: $900,000 Retained earnings: $5,000,000 TOTAL OWNERS’ EQUITY: $6,300,000 The 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: Common stock ($1 par value): $400,000 Capital surplus: $900,000 Retained earnings: $5,000,000 TOTAL OWNERS’ EQUITY: $6,300,000 The 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:
Common stock ($1 par value): $400,000
Capital surplus: $900,000
TOTAL OWNERS’ EQUITY: $6,300,000
The 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.
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