Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Co has 395,000 shares outstanding trading at $43. The company has declared a stock dividend of 15 percent. The common equity accounts shown before
ABC Co has 395,000 shares outstanding trading at $43. The company has declared a stock dividend of 15 percent. The common equity accounts shown before the dividend announcement is below: Owners' Equity: Common stock Retained earnings Total owners' equity $ 1,243,000 3,740,800 4,983,800 A. What would be the number of shares after the distribution of stock dividend? [1 marks] B. What would be the Common stock, Retained earnings and Total owners' equity accounts be after the stock dividend? [2.5 marks] C. What would the Common stock, Retained earnings and Total owners' equity accounts be if instead the company paid equivalent amount of dividend in cash? [2.5 marks] ABC Co has 395,000 shares outstanding trading at $43. The company has declared a stock dividend of 15 percent. The common equity accounts shown before the dividend announcement is below: Owners' Equity: Common stock Retained earnings Total owners' equity $ 1,243,000 3,740,800 4,983,800 A. What would be the number of shares after the distribution of stock dividend? [1 marks] B. What would be the Common stock, Retained earnings and Total owners' equity accounts be after the stock dividend? [2.5 marks] C. What would the Common stock, Retained earnings and Total owners' equity accounts be if instead the company paid equivalent amount of dividend in cash? [2.5 marks]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started