The owners' equity accounts for Trans World International are shown here: Common stock ($1 par value)............................... $
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The owners' equity accounts for Trans World International are shown here:
Common stock ($1 par value)............................... $ 45,000
Capital surplus................................................. 125,000
Retained earnings ..............................................580,000
Total owners' equity.......................................... $750,000
a. If Trans World stock currently sells for $42 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 Trans World 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 
Essentials of Corporate Finance
ISBN: 978-0078034756
8th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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