The company with the common equity accounts shown here has declared a 15 percent stock dividend when
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The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $35 per share. What effects on the equity accounts will the distribution of the stock dividend have?
Common stock ($1 par value).............. $ 406,000
Capital surplus................................1,340,000
Retained earnings............................3,427,000
Total owners' equity.......................$5,173,000
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Given data Stock dividend 15 Price 35 Par value 1 Common stock 406...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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