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Current Attempt in Progress Toy Co Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2)
Current Attempt in Progress Toy Co Inc. is considering one of the three following courses of action: (1) paying a $0.5 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 Toy Co make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Before Action After Cash Dividend $1,269,000 $ $232,000 $ $ Common shares 657,000 Retained earnings 380,000 Total shareholders' equity 1,037,000) Total liabilities and shareholders' equity $1,269,000 $ $ Number of common shares 100,000 After Stock Dividend $ $
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