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Pukalani Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 6% stock dividend, or
Pukalani Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Pukalani make its decision by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend Total assets $1,138,000 $ $ $ Total liabilities $258,000 $ $ $ Shareholders' equity Common shares 616,000 Retained earnings 264,000 Total shareholders' equity 880,000 Total liabilities and shareholders' equity $1,138,000 $ $ $ Number of common shares 100,000 Pukalani Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Pukalani make its decision by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split $1,138,000 $ $ ta $ $258,000 $ $ $ 616,000 264,000 uity 880,000 ireholders' equity $1,138,000 $ $ $ iares 100,000
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