The stockholders’ equity section of Maley Corporation’s balance sheet consists of common stock ($8 par) $1,000,000 and retained earnings $300,000. A 10% stock dividend

(12,500 shares) is declared when the market price per share is $19. Show the beforeand-

after effects of the dividend on

(a) the components of stockholders’ equity and

(b) the shares outstanding.

AppendixLO1