The owners ' equity accounts for Over by International are shown here Common stock ($1 par value) $35,000 Capital surplus 149,000 Retained earnings 565,000 Total owners ' equity $749,000 a If the company 's stock currently sells for $42 per share and a 10 percent stock dividend is declared, how man...

Input Area Common stock 45000 Par value 1 Capital su ...

The owners' equity accounts for Over by International are shown here: Common stock ($1 par value) $35,000

Question:

The owners' equity accounts for Over by International are shown here:

Common stock ($1 par value)	$35,000
Capital surplus	149,000
Retained earnings	565,000
Total owners' equity	$749,000

a. If the company's stock currently sells for $42 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 the company declared a 25 percent stock dividend, how would the accounts change?

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...