EQUITY

Paul Pierce Corporation had the following stockholders equity information from the balance sheet for year ending 12/31/2018.

Preferred Stock - $50 par value, 10% cumulative, 10,000 shares authorized, 4,000 shares issued

Treasury Stock on Preferred $50 par value, 10% cumulative 1000 shares, company paid $150,000 for the Treasury Stock

Common Stock - $2 par value, 1,000,000 shares authorized, 60,000 shares issued

Capital Excess of Par $480,000

Treasury Stock on Common 8,000 shares, company paid $160,000 for the Treasury Stock

Retained Earnings $45,000,000

E). The company has announced a 10% stock dividend on the common stock when the market value of each common share was $25. Describe the impact to the company of such an announcement. Provide specific numbers.

F). What is the result if the company announced a common stock dividend when the market price was $ 30 per share?