On October 31, the equity section of Lucerne Company consists of share capitalordinary CHF327,600 and retained earnings CHF879,100. Lucerne is considering the following two courses of action: (1) declaring a 5% share dividend on the 54,600, CHF6 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF3 per share. The current market price is CHF14 per share. Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share.

Question 11 Your answer is partially correct. Try again. of Lucerne Company consists of share capital ordinary CHF327,600 and retained earnings CHF879,100, Lucerne is On October 3 the equity considering the following two courses of action 1) declaring a 5% share dividend on the 5Ar600, CHF6 par value hares outstanding, or (2) effecting a 2-for-1 share split that value to CHF3 per share. The current market price is CHF14 per share e p Prepare a tabular summary of the effects of the alternative actions o he nts of equity, outstanding shares, and p alue per share. Afte Before share share Action Dividend Equity Share capital-ordinary CHF 327600 CHF C CHF 2760 Share premium-ordinary 0920 Retained earnings equity Outstanding shares lue per share CH tion Attempts: 1 of 3