Due to five years of record earnings at Sing CD Corporation, the market price of its 500,000
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Due to five years of record earnings at Sing CD Corporation, the market price of its 500,000 shares of \($2\) par value common stock tripled from \($15\) per share to \($45\). During this period, paid-in capital remained the same at \($2,000,000\). Retained earnings increased from \($1,500,000\) to \($10,000,000\). President Joan Elbert is considering either a 10% stock dividend or a 2-for-1 stock split. She asks you to show the before and after effects of each option on retained earnings.
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Related Book For
Accounting Tools For Business Decision Making
ISBN: 9780470377857
3rd Edition
Authors: Paul D. Kimmel
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