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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
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 Common stock (12,000 shares at $3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $90,000 36,000 324,000 120,000 $570,000 a. Show the effects on Columbia of a 10% stock dividend. b. In light of your answers to part a, discuss the effects of stock dividend on stockholders' equity. a. The preferred stock of Columbia after a 10% stock dividend is $ . (Round to the nearest dollar.) The common stock of Columbia after a 10% stock dividend is $1. (Round to the nearest dollar.) The paid-in-capital in excess of par of Columbia after a 10% stock dividend is $ - (Round to the nearest dollar.) The retained earnings of Columbia after a 10% stock dividend is S (Round to the nearest dollar.) The total stockholder's equity of Columbia after a 10% stock dividend is $ . (Round to the nearest dollar.) b. Which of the following statements about the effects of stock dividend on stockholders' equity is false? (Select the best answer below.) O A. A stock dividend does not cause a decrease in the overall stockholders' equity account OB. A stock dividend causes overall stockholders' equity account to decrease. OC. A stock dividend increases paid-in capital
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