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Sipacore Inc. is considering one of the three following courses of action: (1) paying a $0.6 cash dividend, (2) distributing a 5% stock dividend, or
Sipacore Inc. is considering one of the three following courses of action: (1) paying a $0.6 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Sipacore make its decision by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend $1,159.000 $ $ $ Total assets $258,000 $ 258000 $ Total liabilities 258000 $ Shareholders' equity Common shares 647,000 647000 Retained earnings 254,000 Total shareholders' equity 901,000 $ $1,159.000 $ $ Total liabilities and shareholders' equity 100,000 100000 Number of common shares Question 5 of 9 Sipacore Inc is considering one of the three following courses of action: (1) paying a $0.6 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Sipacore make its decision by completing the following chart (treat each possibility independently Before Action After Cash Dividend After Stock Dividend Altar Stock Sollt $1.159.000 $ $ $258.000 $ 258000 $ 258000 s 28000 647,000 647000 254,000 901,000 olders equity $1159.000 $ 100.000 100000
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