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Your firm is planning to issue a 15% stock dividend. The market price for the stock has been $28. The table below presents the
Your firm is planning to issue a 15% stock dividend. The market price for the stock has been $28. The table below presents the equity portion of your firm's balance sheet prior to the distribution. Common stock Par value (1 million shares outstanding; $4 par value) = $4,000,000 Paid-in capital = $16,000,000 Retained earnings = $30,000,000 = Total equity $50,000,000 The new balances, after the stock dividend is paid, in the par value, paid-in capital, and retained earnings accounts are, respectively: $600,000; $3,600,000; $4,200,000. $4,600,000; $19,600,000; $25,800,000. O $4,000,000; $16,000,000; $30,000,000.
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