The condensed statement of financial position of Laporte Corporation reports the following amounts: The common shares are

Question:

The condensed statement of financial position of Laporte Corporation reports the following amounts:

The common shares are currently trading for $30 per share. Laporte wants to assess the impact of three possible alternatives:
1. Payment of a $1.50 per share cash dividend
2. Distribution of a 5% stock dividend
3. A 3-for-2 stock split
Instructions
(a) Determine the impact of each alternative on
(1) Assets,
(2) Liabilities,
(3) Common shares,
(4) Retained earnings,
(5) Total shareholders' equity, and
(6) The number of shares.
(b) Identify the advantages and disadvantages of each alternative for the company.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...