The company with the common equity accounts shown here has declared a 10 percent
ID: 2766362 • Letter: T
Question
The company with the common equity accounts shown here has declared a 10 percent stock dividend when the market value of its stock is $40 per share.
What would be the number of shares outstanding, after the distribution of the stock dividend? (Do not round intermediate calculations.)
What would the equity accounts be after the stock dividend? (Do not round intermediate calculations.)
The company with the common equity accounts shown here has declared a 10 percent stock dividend when the market value of its stock is $40 per share.
Explanation / Answer
a New shares outstanding 429000 b Common stock ($1 par value) $ 429000 Capital surplus 847000 Retained earnings 3691800 Total owners' equity $ 4967800