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Ceradyne Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 6% stock dividend, or

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Ceradyne Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Ceradyne make its decision by completing the following chart (treat each possibility independently): After Cash After Stock After Stock Split Before Action Dividend Dividend Total assets $1,138,000 Total liabilities $258,000 Shareholders' equity 616,000 Common shares Retained earnings 264,000 Total shareholders' equity 880,000 $1,138,000 Total liabilities and shareholders' equity 100,000 Number of common shares

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