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Penny Worth Inc. is considering one of the three following courses of action: (1) paying a $0.4 cash dividend, (2) distributing a 6% stock dividend,
Penny Worth Inc. is considering one of the three following courses of action: (1) paying a $0.4 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 $1,211,000 $ $ Total liabilities $262,000 $ $ Shareholders' equity Common shares 554,000 Retained earnings 395,000 Total shareholders' equity 949,000 Total liabilities and shareholders' equity $1,211,000 $ $ Number of common shares 100,000 Penny Worth Inc. is considering one of the three following courses of action: (1) paying a $0.4 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 $1,211,000 $ $ $ $262,000 $ $ $ 554,000 395,000 uity 949,000 reholders' equity $1,211,000 $ $ ares 100,000
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