Firm A had the following selected items on its balance sheet: Cash $28,000,000 Common stock ($50par;2,000,000 shares outstanding $100,000,000 Additional paid-in-capital $10,000,000 Retained Earnings $62,000,000 How would each of these accounts appear after: A cash dividend of $1 per share? A 5 percent stock dividend (fair market value is $100 per share)? A one-for-two reverse split?
Firm A had the following selected items on its balance sheet: Cash $28,000,000 Common stock ($50par;2,000,000 shares outstanding $100,000,000 Additional paid-in-capital $10,000,000 Retained Earnings $62,000,000 How would each of these accounts appear after: A cash dividend of $1 per share? A 5 percent stock dividend (fair market value is $100 per share)? A one-for-two reverse split?
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5P
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Question
Firm A had the following selected items on its balance sheet:
|
Cash |
$28,000,000 |
|
Common stock ($50par;2,000,000 shares outstanding |
$100,000,000 |
|
Additional paid-in-capital |
$10,000,000 |
|
|
$62,000,000 |
How would each of these accounts appear after:
- A cash dividend of $1 per share?
- A 5 percent stock dividend (fair market value is $100 per share)?
- A one-for-two reverse split?
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