Sentry Company has had 4 years of net income Due to this success, the market price of its 400,000 shares of $2 par value common stock has increased from $12 per share to $49 During this period, paid in capital remained the same at $2,400,000 Retained earnings increased from $1,800,000 to $12,000,00...

a 1 The stock dividend amount is 2940000 400000 X 15 X 49 Th ...

Sentry Company has had 4 years of net income. Due to this success, the market price of

Question:

Sentry Company has had 4 years of net income. Due to this success, the market price of its 400,000 shares of $2 has increased from $12 per share to $49. During this period, paid-in capital remained the same at $2,400,000.
Retained earnings increased from $1,800,000 to $12,000,000. President T. Boldt is considering either a 15% stock or a 2-for-1 stock split. He asks you to show the before-and after effects of each option on
(a) Retained earnings
(b) Total stockholders' equity.

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... 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,...