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On October 31, GRANGER Corporations liabilities totalled $201,000. Its shareholders equity consisted of 88,900 common shares issued, $889,000 and retained earnings, $260,000. GRANGER is considering
On October 31, GRANGER Corporations liabilities totalled $201,000. Its shareholders equity consisted of 88,900 common shares issued, $889,000 and retained earnings, $260,000. GRANGER is considering the following three courses of action: (1) paying a $0.50 cash dividend, (2) declaring a 11% stock dividend, or (3) effecting a 3-for-1 stock split. The current market price for its common shares is $15 per share. Complete the following tabular summary of the effects of the alternative actions on GRANGERs shareholders equity and number of common shares. (1) (2) (3) Before Action After Cash Dividend After Stock Dividend After Stock Split Total assets $1,350,000 $ $ $ Total liabilities $201,000 $ $ $ Common shares 889,000 Retained earnings 260,000 Total shareholders' equity 1,149,000 Total liabilities and shareholders equity $1,350,000 $ $ $ Number of common shares 88,900
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