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Oriole Inc. is considering one of three options: (1) paying a $0.69 cash dividend, (2) distributing a 7% stock dividend, or (3) effecting a
Oriole Inc. is considering one of three options: (1) paying a $0.69 cash dividend, (2) distributing a 7% stock dividend, or (3) effecting a 3-for-1 stock split. The current fair value is $16 per share. Indicate the financial impact on the financial statement items listed of each action under consideration (treat each possibility Independently). Total assets Total liabilities Common shares Before Action (1) After Cash Dividend (2) After Stock Dividend (3) A $1,911,000 $ $ $ $84,000 $ $ $ 1,364,000 Retained earnings Total shareholders' equity 463,000 1,827,000 Total liabilities and shareholders' equity $1,911,000 $ Number of common shares 62,000
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