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Question 1 Lawn Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock
Question 1 Lawn Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $15 per share. Help Lawn make its decision by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split Total assets $1,346,000 + Total liabilities $261,000 Shareholders' equity Common shares 628,000 Retained earnings 457,000 Total shareholders' equity 1,085,000 Total liabilities and shareholders' equity $1,346,000 Number of common shares 100,000 Question Attempts: 0 of 3 used
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