An owner of 200 shares of Dunston Company common stock receives a stock dividend of four shares (a) What is the effect of the stock dividend on the stockholders proportionate interest (equity) in the corporation (b) How does the total equity of 204 shares compare with the total equity of 200 shares...

An owner of 200 shares of Dunston Company common stock receives a stock dividend of four shares.

Question:

An owner of 200 shares of Dunston Company receives a stock of four shares.
(a) What is the effect of the stock on the stockholder’s proportionate interest (equity) in the corporation?
(b) How does the total equity of 204 shares compare with the total equity of 200 shares before the stock Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...