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before tuesday night please!!! Carla Vista Inc. is considering one of three options: (1) paying a $0.62 cash dividend, (2) distributing a 4% stock dividend,
before tuesday night please!!!
Carla Vista Inc. is considering one of three options: (1) paying a $0.62 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 3-for-1 stock split. The current fair value is $ 13 per share. Help Carla Vista decide what to do by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend $ $ 1,886,000 After Stock Split Total assets $78,000 $ Total liabilities Common shares 1.098.000 Retained earnings 710,000 Total shareholders equity 1.800.000 $ Total assets 1,886,000 $ $ 78,000 Total liabilities 1,098,000 710,000 1,800,000 Common shares Retained earnings Total shareholders equity Total liabilities and shareholders equity Number of common shares $ 1.886.000 61.000 Step by Step Solution
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