Question
The owners' equity accounts for Overby International are shown here: Common stock ($1 par value)$40,000 Capital surplus188,000 Retained earnings620,000 Total owners' equity$848,000 a. Assume the
The owners' equity accounts for Overby International are shown here:
Common stock ($1 par value)$40,000
Capital surplus188,000
Retained earnings620,000
Total owners' equity$848,000
a.Assume the company's stock currently sells for $43 per share and a stock dividend of 15 percent is declared.
How many new shares will be distributed?(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account.(Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Common stock$
Capital surplus
Retained earnings
Total owners' equity$
b.Now assume that instead the company declares a stock dividend of 20 percent.
How many new shares will be distributed?(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account.(Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Common stock$
Capital surplus
Retained earnings
Total owners' equity$
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Analysis for Financial Management
Authors: Robert c. Higgins
8th edition
73041807, 73041803, 978-0073041803
