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this is financial management subject chapter 17 question no 8 and 9 plz solve it asap and plz give correct and complete answer 8. Stock
this is financial management subject chapter 17 question no 8 and 9 plz solve it asap and plz give correct and complete answer
8. Stock Dividends [LO3] The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $43 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity $ 385,000 846,000 3,720,800 $4,951,800 9. Stock Splits [LO3] In the previous problem, suppose the company instead decides on a four-for-one stock split. The firm's 75-cent per share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last year's dividend on the presplit stock. What effect does this have on the equity accounts? What was last year's dividend per shareStep by Step Solution
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