19.2 Stock Dividends. The owners' equity accounts for Hexagon International are shown here: Common Stock (1$ par value) $25,000 Capital surplus 135,000 Retained earnings 487,000 Total owners' equity $647,600 a. If the company's stock currently sells for $39 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. b. If the company declared a 25 percent stock dividend, how would the accounts change? 19.5 Regular Dividends. The balance sheet for Levy Corp. is shown here in market value terms. There are 14,000 shares of stock outstanding. Market Value Balance Sheet Cash $58,000 Equity $503,000 Fixed Assets 445,000 Total $503,000 Total $503,000 The company has declared a dividend of $1.90 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 19.6 Share Repurchase. In the previous problem, suppose the company has announced it is going to repurchase $22,800 worth of stock. What effect will this transaction have on the equity of the company? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend