If a firm has retained earnings of $2.6 million, a common shares account of $4.6 million, and
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Question:
If a firm has retained earnings of $2.6 million, a common shares account of $4.6 million, and additional paid-in capital of $9.2 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "increase," "decrease," or "no change" from the drop-down menu.)
Reatained Earnings _____ to _____
Common Stock _______ to _______
Additional paid-in capital ________ to _______
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date: