What effect does a stock dividend have on the company's total assets?

Problem 1 In some cases, companies elect to pay dividends to stockholders in the form of additional shares of stock instead of cash. A stock dividend is normally declared only on common stock and issued to common stockholders. An analysis of Montalvo, Inc.'s common stock is as follows: Number of Common Shares 215,000 200,000 174,500 Shares authorized Shares issued Shares outstanding OnSeptemberb Montalvo, Inc. declared a 4% stock dividend for its common stockholders. The stock dividend will be distributed on October 13 for holders of record on October 1 Montalvo's common stock has a par value of $20 per share. Complete the table to reflect the correct number of common shares in the company after the stock dividend is distributed. (Hint: Remember, the number of shares declared (and distributed) are calculated using outstanding shares because only outstanding shares receive dividends.) Number of Common Shares Shares authorized Shares issued | als. a00 990 Shares outstanding81 480 Stock divdend 174,500 x 41,-|UABD declaRed outstandina: 114.SoD 181,486