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Current Attempt in Progress Macaron Inc. is considering one of the three following courses of action: (1) paying a $0.6 cash dividend, (2) distributing a
Current Attempt in Progress Macaron Inc. is considering one of the three following courses of action: (1) paying a $0.6 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 Macaron make its decision by completing the following chart (treat each possibility independently): Before Action $1,261,000 After Cash Dividend After Stock Dividend Total assets $ $ $ $ Total liabilities $231,000 $ $ Shareholders' equity Common shares 560,000 Retained earnings 470,000 Total shareholders' equity 1,030,000 Total liabilities and shareholders' equity $1,261,000 $ $ $ Number of common shares 100,000 Macaron Inc. is considering one of the three following courses of action: (1) paying a $0.6 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 Macaron make its decision by completing the following chart (treat each possibility independently): Before Action $1,261,000 After Cash Dividend After Stock Dividend After Stock Split $ $ $ $231,000 $ $ $ 560,000 470,000 lity 1,030,000 eholders' equity $1,261,000 $ $ $ $ ares 100,000
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