(Learning Objectives 2, 3, 4: Measuring the effects of share issuance, dividends, and treasury share transactions) Identify the effects—both the direction and the dollar amount—of these assumed transactions on the total shareholders’ equity of Dracut Corporation.

Each transaction is independent.

a. Declaration of cash dividends of €85 million.

b. Payment of the cash dividend in a.

c. A 5% share dividend. Before the dividend, 72 million shares of €3.00 par ordinary shares were outstanding; the market value was €9.185 at the time of the dividend.

d. Purchase of 1,800 shares of treasury shares (par value €3.00) at €6.25 per share.

e. Sale of 900 shares of the treasury shares for €9.00 per share. The cost of the treasury shares was €6.25 per share.

f. A 3-for-1 stock split. Prior to the split, 72 million shares of €3.00 par ordinary share were outstanding.