Question $5$

At the quarterly meeting of ABC PLC$,$ held on February the $3$rd$,$ the directors declared a $1$ per share dividend for the firm's $100,000$ shares of common stock outstanding. The net effect of declaring and paying this dividend would be to:

increase total assets by $100,000$ and decrease stockholders equity by $100,000$

decrease total assets by $100,000$ and increase stockholders equity by $100,000$

decrease total assets by $100,000$ and decrease stockholders equity by $100,000$

increase total assets by $100,000$ and increase stockholders equity by $100,000$