Jinay Company declares a 50% large stock dividend when there were 5.4 million common shares outstanding with a $1 par value. The current market price is $27 per common share. Which of the following will be the effect of Jinay's stock dividend? Multiple Choice Retained earnings will decrease by $2.70 millio and common stock will increase by $2.70 millio Retained earnings will decrease by $72.90 million and common stock will increase by $72.90 million. Retained earnings will decrease by $72.90 million, common stock will increase by $72.90
Jinay Company declares a 50% large stock dividend when there were 5.4 million common shares outstanding with a $1 par value. The current market price is $27 per common share. Which of the following will be the effect of Jinay's stock dividend? Multiple Choice Retained earnings will decrease by $2.70 millio and common stock will increase by $2.70 millio Retained earnings will decrease by $72.90 million and common stock will increase by $72.90 million. Retained earnings will decrease by $72.90 million, common stock will increase by $72.90
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 2P
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