Sheridan Company has had 4 years of net income. Due to this success, the market price...

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Sheridan Company has had 4 years of net income. Due to this success, the market price of its 496,000 shares of $3 par value common stock has increased from $13 per share to $50. During this period, paid-in capital remained the same at $2,210,000. Retained earnings increased from $1,780,000 to $11,500,000. President E. Rife is considering either a 18% stock dividend or a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on retained earnings. Retained earnings after stock dividend $ Retained earnings after stock split I eTextbook and Media He asks you to show the before-and-after effects of each option on total stockholders' equity. Total stockholders' equity after stock dividend Total stockholders' equity after stock split $ SA Sheridan Company has had 4 years of net income. Due to this success, the market price of its 496,000 shares of $3 par value common stock has increased from $13 per share to $50. During this period, paid-in capital remained the same at $2,210,000. Retained earnings increased from $1,780,000 to $11,500,000. President E. Rife is considering either a 18% stock dividend or a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on retained earnings. Retained earnings after stock dividend $ Retained earnings after stock split I eTextbook and Media He asks you to show the before-and-after effects of each option on total stockholders' equity. Total stockholders' equity after stock dividend Total stockholders' equity after stock split $ SA

Answer rating: 100% (QA)

Lets calculate the effects of each option 1 Stock Dividend 18 Number of new shares 496000 018 89280 ... View the full answer