The owners equity accounts for Alexander International are shown here: Common stock ($.50 par value) ...$ 20,000
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The owners’ equity accounts for Alexander International are shown here:
Common stock ($.50 par value) ...$ 20,000
Capital surplus.........285,000
Retained earnings 6.......38,120
Total owners’ equity.....$933,120
a. If Alexander stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
b. If Alexander declared a 25 percent stock dividend, how would the accounts change?
DividendA 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...
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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