Question 3: The current stockholders' equity account for Hilo Farms is as follows: Common stock (50,000 shares at $3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity 150,00 250,000 450,000 850,000 Hilo has announced plans to issue an additional 5,000 shares of common stock as part of its stock dividend plan. The current market price of Hilo's common stock is $20 per share. Show how the proposed stock dividend would affect the stockholder's equity account. The answer: After stock dividends, the equity accounts will be the following: Common stock (50,000 shares + 5000 new shares at $3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity ? ? ? 850,000 Question 4: Do some research and find the payout policy for one of Saudi banks in 2019. (hint: you will find the answer in the financial statements reports on www.tadawul.com.sa). ***For example, the answer is: Alrajhi Bank (2018) PAID AND PROPOSED DIVIDENDS The Bank distributed dividends for the first half of 2018 amounting to SAR 3,250,000 thousand (i.e. SAR 2 per share) (2017: SAR 2,437,500 thousand (i.e. SAR 1.5 per share). Also, the Bank proposed final dividends for the year 2018 amounting to SAR 3,656,250 thousand (i.e. SAR 2.25 per share) (2017: SAR 4,062,500 thousand i.e. SAR 2.5 per share)