The current stockholders' equity account for Hadeel Farms is as follows: Common stock (50,000 shares at US$3
Question:
Common stock (50,000 shares at US$3 par)..........US$150,000
Paid in capital in excess of par..............................250,000
Retained earnings..............................................450,000
Total stockholders' equity...............................US$850,000
Hadeel has announced plans to issue an additional 5,000 shares of common stock as part of its stock dividend plan. The current market price of Hadeel's common stock is US$20 per share. Show how the proposed stock dividend would affect the stock holder's equity account.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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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Related Book For
Principles of Managerial Finance
ISBN: 978-1408271582
Arab World Edition
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
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