On October 1, Venden Corporations stockholders equity is as follows. Common stock, $5 par value .............. $400,000 Paid-in capital in excess of parcommon stock ...... 25,000 Retained earnings .................... 225,000 Total stockholders equity ................ $650,000 On October 1, Venden declares and distributes a 15% stock dividend when the market price of the stock is $15 per share. Instructions (a) Compute

Chapter 11, Exercises #25

On October 1, Venden Corporation’s stockholders’ equity is as follows.
Common stock, $5 .............. $400,000
Paid-in capital in excess of par—common stock ...... 25,000
Retained earnings .................... 225,000
Total stockholders’ equity ................ $650,000
On October 1, Venden declares and distributes a 15% stock when the market price of the stock is $15 per share.

Instructions
(a) Compute the book value per share
(1) Before the stock
(2) After the stock (Round to two decimals)
(b) Indicate the balances in the three stockholders’ equity accounts after the stock shares have been distributed.

Dividend
A 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...