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Ivanhoe Inc. is considering one of three options: (1) paying a $0.56 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 3-for-1
Ivanhoe Inc. is considering one of three options: (1) paying a $0.56 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 3-for-1 stock split. The current fair value is $15 per share. Help Ivanhoe decide what to do by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split $1,926,000 $ $ Total assets $84,000 $ $ $ Total liabilities Common shares 1,140,000 Retained earnings 702,000 Total shareholders equity 1,842,000 Total liabilities and $1,926,000 $ $ $ shareholders' equity Number of 60,000 common shares
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