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Ivanhoe Company has had 4 years of record earnings. Due to this success, the market price of its 515,000 shares of $2 par value common
Ivanhoe Company has had 4 years of record earnings. Due to this success, the market price of its 515,000 shares of $2 par value common stock has increased from $15 per share to $52. During this period, paid-in capital remained the same at 53, 090,000. Retained earnings increased from $2, 317, 500 to $15, 450,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-l stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) par value per share
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