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Pharoah Inc. is considering one of three options: (1) paying a $0.58 cash dividend, (2) distributing a 7% stock dividend, or (3) effecting a 2-for-1
Pharoah Inc. is considering one of three options: (1) paying a $0.58 cash dividend, (2) distributing a 7% stock dividend, or (3) effecting a 2-for-1 stock split. The current fair value is $ 13 per share. Help Pharoah decide what to do by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split $ $ $ Total assets 1,810,000 $ 70.000 $ $ $ Total liabilities Common shares 1,064,000 Retained earnings 676,000 Total shareholders equity 1,740,000 $ Total liabilities and shareholders' equity $ $ $ GA $ 1.810,000 Number of common shares 56,000
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