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Health Systems Inc. is considering a 15 percent stock dividend. The capital accounts are as follows: Common stock (4,000,000 shares at $10 par) $ 40,000,000
Health Systems Inc. is considering a 15 percent stock dividend. The capital accounts are as follows: |
Common stock (4,000,000 shares at $10 par) | $ 40,000,000 | |
Capital in excess of par* | 15,000,000 | |
Retained earnings | 45,000,000 | |
Net worth | $100,000,000 | |
*The increase in capital in excess of par as a result of a stock dividend is equal to the shares created times (Market price |
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