The owners equity accounts for Octagon International are shown here: a. If Octagon stock currently sells for

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The owners’ equity accounts for Octagon International are shown here:

Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity $ 10,000 150,000 552,500

a. If Octagon stock currently sells for $20 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 Octagon declared a 25 percent stock dividend, how would the accounts change?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 04, 2023 02:17 PM

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The owners equity accounts for Octagon International are shown here: a. If Octagon stock currently sells for

Question:

Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity $ 10,000 150,000 552,500 $712,500

Step by Step Answer:

a If a 10 stock dividend is declared then shareholders will receive 10 more shares than they current...View the full answer

Fundamentals Of Corporate Finance

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