Indicate whether each of the following transactions increases (+), decreases (−), or has no effect (NE) on total assets, total liabilities, and total stockholders’ equity. The first transaction is completed as an example. Transaction      Total Assets Total Liabilities Total Stockholders’ Equity Issue common stock  Issue preferred stockPurchase treasury stockResell treasury stockDeclare cash dividendPay cash dividend100% stock dividend2-for-1 stock split +         NE         +

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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.