The equity section of Martin Corporation consists of ordinary shares (10 par) 2,000,000 and retained earnings 300,000 A 10 share dividend (20,000 shares) is declared when the market value per share is 14 Show the before and after effects of the dividend on the following (a) The components of equity...

Before Dividend After Dividend a Equity Share CapitalOrdin ...

The equity section of Martin Corporation consists of ordinary shares (10 par) 2,000,000 and retained earnings 300,000.

Question:

The equity section of Martin consists of ordinary shares (£10 par) £2,000,000 and retained earnings £300,000. A 10% share (20,000 shares) is declared when the market value per share is £14. Show the before-and-after effects of the on the following.
(a) The components of equity.
(b) Shares outstanding.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...