On January 1,2018, Arwing Inc. declared a 10% stock dividend on its common shares when the market value of the common shares was $20 per share. Shareholders' equity before the stock dividend was declared consisted of: Con shares, authorized 200,000 shares, $1,350,000 issued 120,000 shares Retained earmigs Tctal shareholders equity What was the effect on Arwing's retained earnings as a result of the above transaction? $240,000 decrease $120,000 decrease $200,000 decrease $400,000 decrease During 2018, Longhorn Corp. had net income of $300,000 and paid dividends to its preferred shareholders in the amount of $20,000. On January 1,2018, the start of the year, the company had 100,000 common shares issued. On April 1, the company issued anothe 50,000 common shares. What is the weiphted average number of shares on December 31, 2018? 137,500 shares 62,500 6 shares 50,000 shares 150,00O shares Cambridge Corp. declared a 5% stock dividend. W Wales o ed 300 shares o Cambridge before the di dend Cambridge shares were trading at $2 et ethed vid d whic ofthe lo il rueart hed vid sd Strib ted? The total market value of will's shares was $6.300 before the stock dividend but will probably decrease after the stock dividend. Will owned 300 shares before the stock dividend and 315shares after the stock dividend. Fewer investors will be able to buy Cambridge shares. The total market value of Will's shares was $6,300 before the stock dividend and $6,615 after the stock dvidend. Identify all of the following statements that are correct with regards to dividends and stock splits: a. The record date is the date that will determine who is eligible to receive a dividend. b. when a stock split occurs, a share's market value will decline and, initially, each shareholder's wealth will decline. c. Companies are not required to declare and issue dividends to common shareholders, but companies are required to declare and issue a dividend to preferred shareholders. d. If a person holds 25% of the common shares in a company, they will receive 25% of the total dividends paid on common shares. e. Both cash dividends and stock dividends decrease shareholders' equity. t The advantage of a stock split is that it may increase the marketability of the shares by lowering the share price. g. The Canada Business Corporations Act requires that stock dividends be recorded at book value. h. When a stock dividend is declared, additional shares will be issued to each shareholder based on the proportion of the outstanding shares that each of the shareholders owns on the date of declaration