Stock dividend Firm

Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of

$35per share.

Preferred stock	$110,000
Common stock (12000shares at $33 par)	36,000
Paid-in capital in excess of par	384,000
Retained earnings	80,000
Total stockholders' equity	$610,000

a.Show the effects on Columbia of a15%stock dividend.

b.In light of your answers to part a,

discuss the effects of stock dividend on stockholders' equity.