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Sandhill Inc. is considering one of three options: (1) paying a $0.51 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 3-for-1
Sandhill Inc. is considering one of three options: (1) paying a $0.51 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 3-for-1 stock split. The current fair value is $13 per share. After Stock Split $ $ $ $ $ Help Sandhill decide what to do by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend $1,868,000 $ $ $ Total assets Total $74,000 $ $ $ liabilities Common 1,235,000 shares Retained 559,000 earnings Total shareholders' 1,794,000 equity Total liabilities and $1,868,000 $ $ shareholders' equity Number of common 65,000 shares $ $ $
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