c) Consider the following data: Amount ($) Common stock ($1 par value) 400,000 Capital surplus 900,000 Retained

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c) Consider the following data:

Amount ($)

Common stock ($1 par value) 400,000

Capital surplus 900,000

Retained earnings 5,000,000

TOTAL OWNERS' EQUITY 6,300,000

Current market price of shares = $51 per share.

What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend.

Related Book For answer-question

Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: May 11, 2024 10:10 AM

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c) Consider the following data: Amount ($) Common stock ($1 par value) 400,000 Capital surplus 900,000 Retained

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Expert Answer:

A stock dividend is a distribution of additional shares to existing shareholders in proportion to their current shareholdings It does not involve any ... View the full answer

Essentials Of Corporate Finance

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