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Blossom Inc. is considering one of three options: (1) paying a $0.34 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1
Blossom Inc. is considering one of three options: (1) paying a $0.34 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current fair value is $ 16 per share. Help Blossom decide what to do by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split $ 1,871,000 $ $ $ Total assets $74,000 $ $ $ $ $ Total liabilities Common shares 1,100,000 Retained earnings 697,000 Total shareholders' equity 1,797,000 Total liabilities and shareholders' equity $ 1,871,000 $ $ $ Number of common shares 55,000
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