The owners' equity accounts for Quadrangle International are shown here: Common stock ($1 par value)...............$ 30,000 Capital
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The owners' equity accounts for Quadrangle International are shown here:
Common stock ($1 par value)...............$ 30,000
Capital surplus.................................285,000
Retained earnings.............................649,180
Total owners' equity........................$964,180
a. If Quadrangle 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 Quadrangle 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: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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