Wysoski Enterprises is considering a stock dividend. The firms capital includes 3 million shares of $1 par

Question:

Wysoski Enterprises is considering a stock dividend. The firm’s capital includes 3 million shares of $1 stock issued at an average price of $8. Retained earnings total $20 million. State the equity accounts now and after each of the following possible stock dividends.
a. Wysoski declared a 5% stock dividend, and the current price of the stock is $15.
b. Wysoski declared a 10% stock dividend, and the current price of the stock is $20.
c. Wysoski declared a 15% stock dividend, and the current price of the stock is $23.

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,...