Question $4$ of $5$

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Metlock, Inc. has had $4$ years of record earnings. Due to this success, the market price of its $310,000$ outstanding shares of $$2$ par value common stock has increased from $$7$ per share to $$51.$ During this period, paid$-$in capital remained the same at $$2,630,000.$ Retained earnings increased from $$1,830,000$ to $$13,000,000.$ CEO Don Ames is considering either a $15\%$ stock dividend or a $2-$for$-1$ stock split.

$($a$)$

Your answer is correct.

He asks you to show the before$-$and$-$after effects of each option on retained earnings.

Retained earnings after stock dividend

$

Retained earnings after stock split

$

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Metlock, Inc. has had $4$ years of record earnings. Due to this success, the market price of its $310,000$ outstanding shares of $$2$par value common stock has increased from $$7$ per share to $$51.$ During this period, paid$-$in capital remained the same at $$2,630,000.$ Retained earnings increased from $$1,830,000$ to $$13,000,000.$ CEO Don Ames is considering either a $15\%$ stock dividend or a $2-$for$-1$ stock split.

$($a$).$

Y Your answer is correct.

He asks you to show the before$-$and$-$after effects of each option on retained earnings.

Retained earnings after stock dividend $

Retained earnings after stock split

$ $$

ASKING WHAT IS THE TOTAL STOCKHOLDERS EQUITY AFTER STOCK SPLIT

AND TOTAL STOCKHOLDERS EQUITY AFTER STOCK DIVIDEND