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Golden Valley Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 5% stock dividend,

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Golden Valley Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Golden Valley make its decision by completing the following chart (treat each possibility independently): Before After Cash After Stock Action Dividend Dividend Total assets $1,196,000 $ 1196000 Total liabilities $243,000 $ 243000 243000 Shareholders' equity Common shares 647.000 647000 Retained earnings 306,000 Total shareholders' equity 953,000 953000 Total liabilities and shareholders' equity $1,196,000 1196000 Number of common shares 100,000 100000

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