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XYZ Co has 7,500 shares of stock outstanding with a par value of $1.00 per share and a market value of $2.5 per share. The

XYZ Co has 7,500 shares of stock outstanding with a par value of $1.00 per share and a market value of $2.5 per share. The balance sheet shows $22,000 in the common stock account, and $82,500 in the retained earnings account. The firm just announced a 80 percent stock dividend. By what amount will retained earnings go down as a result of this dividend?

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