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Oak Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 6% stock dividend, or
Oak Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Oak make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,138,000 $258,000 616,000 264,000 880,000 $1,138,000 100,000 $ LA After Cash Dividend LA $ After Stock Dividend LA $ SA
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