An owner of 500 shares of Microshop Company common stock receives a stock dividend of 5 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 505 shares compare with the total equity of 500 shares ...

Stock dividend a If the stock dividend go ...

An owner of 500 shares of Microshop Company common stock receives a stock dividend of 5 shares.

Question:

An owner of 500 shares of Microshop Company receives a stock of 5 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 505 shares compare with the total equity of 500 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...