Brief Exercise 14-4

The stockholders equity section of Pretzer Corporation consists of common stock ($10 par) $2,300,000 and retained earnings $525,000. A 10% stock dividend (23,000 shares) is declared when the market price per share is $15. Show the before-and-after effects of the dividend on the following.

(a)		The components of stockholders equity.
(b)		Shares outstanding.
(c)		Par value per share.

Brief Exercise 14-4 The stockholders' equity section of Pretzer Corporation consists of common stock ($10 par) $2,300,000 and retained earnings $525,000. A 10% stock dividend (23,000 shares) is declared when the market price per share is $15. Show the before-and-after effects of the dividend on the following. (a) The components of stockholders' equity. (b) Shares outstanding. (c) Par value per share. Before After Dividend Dividend Stockholders' equity Outstanding shares Par value per sharet