A company with the shareholders equity shown below declares a stock dividend of 20 percent. The market

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A company with the shareholders equity shown below declares a stock dividend of 20 percent.

The market value of its common stock is €100 per share, while the par value is 2.

Common stock 1.000.000 €

Capital surplus 2.000.000 €

Retained earnings 10.000.000 €

Total owners' equity 13.000.000 €

a) How many shares are they going to issue?

b) What is the new statement of shareholders Equity?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: May 04, 2023 12:51 AM

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A company with the shareholders equity shown below declares a stock dividend of 20 percent. The market

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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