The owners' equity accounts for Freya International are shown here: Common stock ($.50 par value)....................$ 40,000 Capital
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The owners' equity accounts for Freya International are shown here:
Common stock ($.50 par value)....................$ 40,000
Capital surplus.........................................345,000
Retained earnings.....................................748,900
Total owners' equity..............................$1,133,900
a. If Freya stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
b. If Freya declared a 25 percent stock dividend, how would the accounts change?
DividendA 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
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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