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Wildhorse Inc. is considering one of three options: (1) paying a $0.30 cash dividend, (2) distributing a 3% stock dividend, or (3) effecting a
Wildhorse Inc. is considering one of three options: (1) paying a $0.30 cash dividend, (2) distributing a 3% stock dividend, or (3) effecting a 4-for-1 stock split. The current fair value is $16 per share. Help Wildhorse decide what to do by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split Total assets $1,866,000 $ 1849200 $ 1866000 $ Total $67,000 $ 67000 67000 $ 67000 liabilities Common shares 1,365,000 1365000 1365000 Retained 434,000 434000 earnings Total shareholders' 1,799.000 1799000 1799000 equity
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