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?
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Related Book For
Corporate Financial Accounting
ISBN: 9781337398176
15th Edition
Authors: Carl Warren, Jefferson Jones
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