On October 31, the stockholders equity section of Kolt Companys balance sheet consists of common stock $548,000 and retained earnings $500,000. Kolt is considering the following two courses of action: (1) declaring a 10% stock dividend on the 68,500 $8 par value shares outstanding or (2) effecting a 2-for-1 stock split that will reduce par value to $4 per share. The current market price is $17 per share.

V. On October 31 , the stockholders' equity section of Kolt Company's balance sheet consists of common stock $548,000 and retained earnings $500,000. Kolt is considering the following two courses of action: (1) declaring a 10% stock dividend on the 68,500$8 par value shares outstanding or (2) effecting a 2 -for-1 stock split that will reduce par value to $4 per share. The current market price is $17 per share. Instructions Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Use these column headings: Before Action, After Stock Dividend, and After Stock Split. VI. Juarez Corporation decided to issue common stock and used the $300,000 proceeds to retire all of its outstanding bonds on January 1, 2017. The following information is available for the company for year N and year N1. Instructions (a) Compute the return on common stockholders' equity for both years. (b) Explain how it is possible that net income increased, but the return on common stockholders' equity decreased