Question
On 28 February 2024, Xavier Ltd declared and distributed an 8% share dividend (bonus issue). At that date the entity's total share capital was $180
On 28 February 2024, Xavier Ltd declared and distributed an 8% share dividend (bonus issue). At that date the entity's total share capital was $180 000, fully paid to $1. The market price of the shares on 28 February was $1.10. What is the effect of this dividend on Xavier Ltd's total shareholders' equity? Group of answer choices
No effect
Decrease of $14 400
Increase of $14 400
an increase of $15 840
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Auditing A Practical Approach with Data Analytics
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
1st edition
1119401747, 978-1119401742
