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Int Lab Corp. has 675,000 shares of $1 par value common stock. The current market price is $100. The CEO of the company is considering
Int Lab Corp. has 675,000 shares of $1 par value common stock. The current market price is $100. The CEO of the company is considering either a $1 per share cash dividend, or 12% stock dividend, or a 2- for-1 stock split. Calculate the impact on the items of stockholders' equity for each alternative option in the following table. Option 3 Option 1 If 2-for-1 stock split Option 2 After $1 per share cash dividend If 12% stock dividend paid Paid-in capital Retained earnings Original Balances $4,500,000.00 $10,000,000.00 $14,500,000.00 Total stockholders' equity Outstanding shares $675,000 $1.0 $100 Par value per share Market value per share Total Market value of equity $67,500,000.00
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