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Penny Worth Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 6% stock dividend,
Penny Worth 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 Penny Worth make its decision by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend Total assets $1,153,000 $ $ TA $ Total liabilities $253,000 $ $ $ Shareholders' equity Common shares 633,000 Retained earnings 267.000 Total shareholders' equity 900.000 Total liabilities and shareholders' equity $1,153,000 $ $ $ Number of common shares 100,000 Penny Worth 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 Penny Worth make its decision by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split $1.153.000 $ $ $ $253.000 $ $ $ 633,000 267.000 I ty 900,000 holders' equity $1,153,000 $ $ $ es 100,000
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