Cheyenne Corp. has had 4 years of record earnings. Due to this success, the market price...

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Cheyenne Corp. has had 4 years of record earnings. Due to this success, the market price of its 460,000 outstanding shares of $2 par value common stock has increased from $5 per share to $52. During this period, paid-in capital remained the same at $2,450,000. Retained earnings increased from $1,780,000 to $12,300,000. CEO Don Ames is considering either a 18% stock dividend or a 2-for-1 stock split. (a) He asks you to show the before-and-after effects of each option on retained earnings Retained earnings after stock dividend $ Retained earnings after stock split Cheyenne Corp. has had 4 years of record earnings. Due to this success, the market price of its 460,000 outstanding shares of $2 par value common stock has increased from $5 per share to $52. During this period, paid-in capital remained the same at $2,450,000. Retained earnings increased from $1,780,000 to $12,300,000. CEO Don Ames is considering either a 18% stock dividend or a 2-for-1 stock split. (a) He asks you to show the before-and-after effects of each option on retained earnings Retained earnings after stock dividend $ Retained earnings after stock split

Answer rating: 100% (QA)

Answera Retained Earnings after Stock Dividend 7994400 Retained E... View the full answer