CBA Inc has 250,000 shares outstanding with a $5 par value. The shares were issued for $14.

Question:

CBA Inc has 250,000 shares outstanding with a $5 par value. The shares were issued for $14. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock that will increase the number of outstanding shares by 6%. What will be the capital in excess of par account after the stock $7,685,000
b) $2,685,000
c) $810,000
d) $2,385,000

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...