Question
Current Attempt in Progress Handley Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a
Current Attempt in Progress Handley Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Handley make its decision by completing the following chart (treat each possibility independently): Before Action Total assets $1,342,000 Total liabilities $264,000 $ Shareholders' equity Common shares 555,000 Retained earnings 523,000 Total shareholders' equity 1.078,000 Total liabilities and shareholders' equity $1,342,000 $ After Cash Dividend $ After Stock Dividend
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