Question

Identify the effects—both the direction and the dollar amount—of these assumed transactions on the total stockholders’ equity of Toben Corporation. Each transaction is independent.
a. Declaration of cash dividends of $58 million.
b. Payment of the cash dividend in part a.
c. A 25% stock dividend. Before the dividend, 69 million shares of $1.00 par common stock were outstanding; the market value was $19.88 at the time of the dividend.
d. A 40% stock dividend. Before the dividend, 69 million shares of $1.00 par common stock were outstanding; the market value was $18.50 at the time of the dividend.
e. Purchase of 1,800 shares of treasury stock (par value $1.00) at $14.00 per share.
f. Sale of 800 shares of the treasury stock for $18.00 per share. Cost of the treasury stock was $14.00 per share.
g. A 2-for-1 stock split. Prior to the split, 69 million shares of $1.00 par common stock were outstanding.



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  • CreatedJuly 25, 2014
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