QUESTION 2 The following is a partial Statement of Financial Position of Juara Bhd: Common stock...

 

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QUESTION 2 The following is a partial Statement of Financial Position of Juara Bhd: Common stock (RM1.50 par) RM Paid in Capital Retained earnings Total shareholder's equity Additional info: The current market price per share is RM8. a. Question: Show the effect on the shareholder's equity account if the company declares 15% stock dividend. (10 marks) b. RM C. 30,000,000 15,000,000 45,000,000 90,000,000 Show the effect on the shareholder's equity account if the company declares 3 for 1 stock split. (6 marks) Based on answer in Q2a and Q2b, explain the effect of stock dividend and stock split to the firm's capital structure. (5 marks) QUESTION 2 The following is a partial Statement of Financial Position of Juara Bhd: Common stock (RM1.50 par) RM Paid in Capital Retained earnings Total shareholder's equity Additional info: The current market price per share is RM8. a. Question: Show the effect on the shareholder's equity account if the company declares 15% stock dividend. (10 marks) b. RM C. 30,000,000 15,000,000 45,000,000 90,000,000 Show the effect on the shareholder's equity account if the company declares 3 for 1 stock split. (6 marks) Based on answer in Q2a and Q2b, explain the effect of stock dividend and stock split to the firm's capital structure. (5 marks)

Answer rating: 100% (QA)

Shareholders fund Shareholders Equity is the net amount of total net asset ... View the full answer