P139 Stock dividend: Firm Columbia Paper has the following stockholders equity account. The firms common stock has

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P13–9 Stock dividend: Firm Columbia Paper has the following stockholders’ equity account.

The firm’s common stock has a current market price of $30 per share.

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a. Show the effects on Columbia of a 5% stock dividend.

b. Show the effects of (1) a 10% and (2) a 20% stock dividend.

c. In light of your answers to parts a and

b, discuss the effects of stock dividends on stockholders’ equity.

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Related Book For  book-img-for-question

Principles Of Managerial Finance

ISBN: 9780133546408

7th Edition

Authors: Lawrence J Gitman, Chad J Zutter

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