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5. Star, Inc. has retained earnings of $800,000 and total equity of $2,000,000. It has 200,000 ordinary shares with a $5 par value outstanding, which
5. Star, Inc. has retained earnings of $800,000 and total equity of $2,000,000. It has 200,000 ordinary shares with a $5 par value outstanding, which is currently selling for $30 per share. If Ludwick declares a 10% share dividend on its ordinary shares: (3 Points) retained earnings will decrease by $600,000 and share capital and share premium will increase by $600,000 net income will decrease by $100,000. retained earnings will decrease by $100,000 and total equity will increase by $100,000. retained earnings will decrease by $600,000 and total equity will increase by $600,000
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