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On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share. Complete the tabular summary of the effects of the alternative actions on the components of ...
Weegy: After stock dividend Stock Dividend is 5% on the 60,000, [ $10 par value shares outstanding = 3,000 shares of $10 each What is common stock = 60,000 + 3,000 = 63,000 shares of $10 each = $630,000 In excesss of par value Current market price is $14, which is $4 more than par value ... (More)
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Business and Money|No Subcategories|Expert Answered
Asked 7/22/2012 7:28:12 PM
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