A. STW retained earnings produces the following result. a. reduces corporate capital.

b. reduces the net assets of the company.

c. reduces retained earnings available for dividends. d. creates a fund to pay future contingent debts.

B. PKM has 560,000 common shares outstanding with an even value of $ 10. On January 2, 2019, PKM declared and distributed a stock dividend 10%when the stock's market price was $ 30. Four months later, PKM declared a cash dividend of $0.50 per share. As a result of the declaration of both dividends, the retained earnings decreased by a. $ 1,708,000 b. $ 868,000 c. $ 308,000 d. $ 1,988,000