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Kokomo Inc. is considering one of the three following courses of action: (1) paying a $0.6 cash dividend, (2) distributing a 5% stock dividend,
Kokomo Inc. is considering one of the three following courses of action: (1) paying a $0.6 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 Kokomo make its decision by completing the following chart (treat each possibility independently): Total assets Before Action $1,159,000 Total liabilities Shareholders' equity $258,000 Common shares 647,000 Retained earnings 254,000 Total shareholders' equity 901,000 Total liabilities and shareholders' equity $1,159,000 charor 100.000 After Cash Dividend $ After Stock Dividend $ Kokomo Inc. is considering one of the three following courses of action: (1) paying a $0.6 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 Kokomo make its decision by completing the following chart (treat each possibility independently): Before Action $1,159,000 $258,000 647,000 254,000 ty 901,000 holders' equity $1,159,000 es 100,000 After Cash Dividend $ After Stock Dividend $ $ After Stock Split
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