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The following information is from 2013 statement of stockholders' equity for Dynegy, inc Stockholders' equity (in millions, except shares 2012 2013 Common stock, par value
The following information is from 2013 statement of stockholders' equity for Dynegy, inc Stockholders' equity (in millions, except shares 2012 2013 Common stock, par value $0.01 (100,202,036 shares issued 2013; 99,999,196 shares issued 2012) Additional paid-in capital 2,598 2,614 Accumulated other comprehensive income, net of tax 58 Accumulated deficit 107 (463) Total Dynegy stockholders' equity 2,503 2,210 Noncontrolling interest Total Equity $2,207 $2,503 Dynegy has 420 million shares of common stock authorized. Assume the following transactions occurred during the 2014. Mar 10 Declare and pay a cash dividend of $1.75 per share May 6 Split stock 2-for-1 reducing the par value of the stock to $0.005 Aug 25 ssue a large stock dividend of 80% of the outstanding shares of common stock Required: a. Use the financial statement effects template below to record the three transactions. b. How did the cash dividend affect the company's profitability for the year? c. What effects does the stock split have on Dynegy's financial statements? d. What effects does the stock split have on an individual stockholder? Balance Sheet Income Statement Cash Transaction Asset Noncash Liab Contrib. Earned Reva Ca Capital enues Expen- Net ities Assets Income Mar 10 May 6 Aug 25
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