An owner of 2,500 shares of Simmons Company common stock receives a stock dividend of 50 shares.

Question:

An owner of 2,500 shares of Simmons Company common stock receives a stock dividend of 50 shares.

a. What is the effect of the stock dividend on the stockholder’s proportionate interest (

equity) in the corporation?

b. How does the total equity of 2,550 shares compare with the total equity of 2,500 shares before the stock dividend?

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Financial Accounting

ISBN: 9781337398176

15th Edition

Authors: Carl Warren, Jefferson Jones

Question Posted: