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On January 1, Nortell Inc. had total shareholders' equity as shown below when their shares were trading at $25 per share Assume the company declared
On January 1, Nortell Inc. had total shareholders' equity as shown below when their shares were trading at $25 per share Assume the company declared and issued a 50% stock dividend. The effect of this dividend would: Multiple Choice Increase common shares by $1,250,000 with no change in the number of issued and outstanding shares leave total shareholders' equity unchanged but increase the number of shares issued and outstanding to 187,500 reduce retained earnings by $2,000,000 Bnd double the number of shares issued and outstanding increase common shares by 62,500 and increase shareholders' equity
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