E10.3 Compare effects of a share dividend and a cash dividend. LOS On 31 October the equity section of Summer Ltd's statement of financial position consists of contributed equity $550 000 and retained earnings $240 000. Summer Ltd is considering the following two courses of action: (1) declaring a 6% share dividend on the 550 000 $1 issued ordinary shares or (2) paying a cash dividend of $0.06 per share. If the company issues shares as a dividend, the shares will have a nominal value of $1 each. Required Prepare a tabular summary of the effects of the alternative actions on the company's equity, the number of issued shares and share capital. Use these column headings: Original balances, After share dividends and After cash dividends (as illustrated in the section 10.5 'Learning reflection and consolidation' box), and comment on any assumption made and which course of action you would advise Summer Ltd to take