ses log and Study Tools al Options ge Success Tips er Success Tips DED FOR YOU dy Tools for Introductory Finance eedback 8. Stock dividends Sometimes companies pay dividends in the form of additional shares of stock instead of cash. The impact of making distributions in the form of stock dividends is reflected in the statement of stockholders' equity. Consider the case of the Blue Box Crate Company: The pre-stock dividend common stockholders' equity statement for Blue Box Crate Company is as follows: Blue Box Crate Company Pre-Stock Dividend Common Stockholders' Equity Common stock ($7 par, 1,400,000 shares) Contributed capital in excess of par Retained earnings Total common stockholders' equity $9,800,000 $1,050,000 $3,500,000 $14,350,000 4 Suppose you own 100 shares of Blue Box Crate's stock. Blue Box Crate's stock is trading at a market price of $14 per share, and the company recently declared a 8% stock dividend. You are worried about the dilution of your earnings, so you'd like to make some calculations