XYZ Co has 2,500 shares of stock outstanding with a par value of $1.50 per share and a market value of $7.5 per share. The balance sheet shows $22,000 in the common stock account, and $52,500 in the retained earnings account. The firm just announced a 80 percent stock dividend. By what amount will retained earnings go down as a result of this dividend?

Answer rating: 100% (QA)

Market value of share 75 Firm declared 80 stock dividend which ... View the full answer