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On October 31, the stockholders' equity section of Oriole Company's balance sheet consists of common stock $833,000 and retained earnings $901,000. Oriole is considering the
On October 31, the stockholders' equity section of Oriole Company's balance sheet consists of common stock $833,000 and retained earnings $901,000. Oriole is considering the following two courses of action: (1) declaring a6\% stock dividend on the83,300 $10 par value shares outstanding or (2) effecting a 2 -for-1 stock split that will reduce par value to $5 per share. The current market price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares
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