The company is considering 3 different dividends/ splits for its stockholders. Compute each of the three...
The company is considering 3 different dividends/ splits for its stockholders. Compute each of the three following alternatives as if independent from the others. Finish the table computations using Excel.
| Balance | 100% | Two for | $5,000 | |
| 12/31/2018 | Stock | One stock | Cash | |
| Dividend | Split | Dividend | ||
| # of Common Shares Outstanding | ||||
| Par Value of Common Stock | ||||
| Common Stock, $1 par | 5000 | |||
| Additional Paid-In Capital CS | 745000 | |||
| Retained Earnings | 980000 | |||
| Total Stockholder's Equity | 1730000 | |||
Homework Answers
Complete table
| 12/31/2018 | Stock dividend | Stock split | Cash dividend | |
| # of common shares outstanding | 5000 | 10000 | 10000 | 5000 |
| Par value per share | 1 | 1 | 0.5 | 1 |
| Common Stock | 5000 | 10000 | 5000 | 5000 |
| Additional paid in capital CS | 745000 | 745000 | 745000 | 745000 |
| Retained earnings | 980000 | 975000 | 980000 | 975000 |
| Total Stockholder's equity | 1730000 | 1730000 | 1730000 | 1725000 |
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