Question
A company with the shareholders equity shown below declares a stock dividend of 20 percent. The market value of its common stock is 100 per
A company with the shareholders equity shown below declares a stock dividend of 20 percent.
The market value of its common stock is €100 per share, while the par value is 2.
Common stock 1.000.000 €
Capital surplus 2.000.000 €
Retained earnings 10.000.000 €
Total owners' equity 13.000.000 €
a) How many shares are they going to issue?
b) What is the new statement of shareholders Equity?
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
