The equity section of Neely Company Ltd consists of share capital ordinary (10 par) 2,000,000 and retained earnings 500,000 A 15 share dividend (30,000 shares) is declared when the market price per share is 16 Show the before and after effects of the dividend on the following (a) The components of ...

Before Dividend After Dividend a Equity Share Capital x Ordinary ...

The equity section of Neely Company Ltd. consists of share capital-ordinary (10 par) 2,000,000 and retained earnings

Question:

The equity section of Neely Company Ltd. consists of share capital-ordinary (£10 par) £2,000,000 and retained earnings £500,000. A 15% share (30,000 shares) is declared when the market price per share is £16. Show the before-and-after effects of the on the following.
(a) The components of equity.
(b) Shares outstanding.
(c) per share.
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...