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Pembina Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 6% stock dividend, or
Pembina Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Pembina make its decision by completing the following chart (treat each possibility independently):
Before Action | After Cash Dividend | After Stock Dividend | After Stock Split | ||||||
---|---|---|---|---|---|---|---|---|---|
Total assets | $1,138,000 | $enter a total amount for the first part | $enter a total amount for the first part | $enter a total amount for the first part | |||||
Total liabilities | $258,000 | $enter a total amount for section one of the second part | $enter a total amount for section one of the second part | $enter a total amount for section one of the second part | |||||
Shareholders equity | |||||||||
Common shares | 616,000 | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
Retained earnings | 264,000 | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
Total shareholders equity | 880,000 | enter a total amount for section two of the second part | enter a total amount for section two of the second part | enter a total amount for section two of the second part | |||||
Total liabilities and shareholders equity | $1,138,000 | $enter a total amount for the second part | $enter a total amount for the second part | $enter a total amount for the second part | |||||
Number of common shares | 100,000 | enter a number of shares | enter a number of shares | enter a number of shares |
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