Question
Please assist with the following: I am unsure what I am doing wrong. Sheridan Company has had 4 years of record earnings. Due to this
Please assist with the following: I am unsure what I am doing wrong.
Sheridan Company has had 4 years of record earnings. Due to this success, the market price of its445,000shares of $2par value common stock has increased from $15per share to $51. During this period, paid-in capital remained the same at $2,670,000. Retained earnings increased from $2,002,500to $13,350,000. CEO Don Ames is considering either (1) a15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) par value per share.
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