E14-4

Compare ofects of a stock E14-4 On October 31, the stockholders' equity section of Heins Company consists dividend and a stock splt. common stock $500,000 and retained earnings $900,000. Heins is considering the o a LO 2) nsidering the following two courses of action (1)declaring a 5% stock dividend on the 50,000, s 10 paresper shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce parv share. The current market price is $14 per share