On October 1, Chile Corporations stockholders equity is as follows Common stock, $5 par value $200,000 Paid in capital in excess of par value 25,000 Retained earnings 75,000 Total stockholders equity $300,000 On October 1, Chile declares and distributes a 10 stock dividend when the market value of ...

a 1 Book value before the stock dividend was 750 300000 40000 2 Book value after the stock dividen ...

On October 1, Chile Corporations stockholders equity is as follows. Common stock, $5 par value ......... $200,000

Question:

On October 1, Chile Corporation’s stockholders’ equity is as follows.
Common stock, $5 ......... $200,000
Paid-in capital in excess of ...... 25,000
Retained earnings .............. 75,000
Total stockholders’ equity .......... $300,000

On October 1, Chile declares and distributes a 10% stock when the market value of the stock is $15 per share.

Instructions
(a) Compute the book value per share
(1) Before the stock and
(2) After the stock (Round to two decimals.)
(b) Indicate the balances in the three stockholders’ equity accounts after the stock shares have been distributed.

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...