Stock

dividendFirm

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

$30

per share.

Preferred stock	$100,000
Common stock (10,000 shares at $2 par)	20,000
Paid-in capital in excess of par	280,000
Retained earnings	100,000
Total stockholders' equity	$500,000

a.Show the effects on Columbia of a

5%

stock dividend.

b.In light of your answers to part

a,

discuss the effects of stock dividend on stockholders' equity.

Question content area bottom

Part 1

a.The preferred stock of Columbia after a

5%

stock dividend is

$enter your response here.

(Round to the nearest dollar.)