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Pina Colada Corp. has had 4 years of record earnings. Due to this success, the market price of its 300,000 outstanding shares of $2 par
Pina Colada Corp. has had 4 years of record earnings. Due to this success, the market price of its 300,000 outstanding shares of $2 par value common stock has increased from $8 per share to $55. During this period, paid-in capital remained the same at $2,610,000. Retained earnings increased from $1,760,000 to $12,800,000. CEO Don Ames is considering either a 15% stock dividend or a 2-for-1 stock split.
He asks you to show the before-and-after effects of each option on retained earnings. Retained earnings after stock dividend ta Retained earnings after stock split ta He asks you to show the before-and-after effects of each option on total stockholders' equity. Total stockholders' equity after stock dividend TA $ Total stockholders' equity after stock split $ He asks you to show the before-and-after effects of each option on par value per share. Par value per share after stock dividend Par value per share after stock splitStep by Step Solution
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