RBC Financial Group provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and

Question:

RBC Financial Group provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. On March 3, 2006, a press release announced the following:
Royal Bank of Canada ( RY: TSX, NYSE, SWX) today announced that its Board of Directors has declared a stock which has the same effect as a two- for- one split of its common shares.
RBC’s last stock was paid on October 5, 2000.
The Board of Directors today also declared a quarterly common share cash of $ 0.72 per share, which represents $ 0.36 per share on a post- stock basis. This of $ 0.36 per share is payable on May 24, 2006, to common shareholders of record on April 25, 2006.
Required:
1. Prepare any journal entries that RBC Financial should make as the result of information in the preceding report. Assume that the company has 1.3 million shares outstanding with a market value of $ 47 per share and an average issue price of $ 5.60.
2. What factors did the board of directors consider in making this decision? 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...