the owners’ equity accounts for Quadrangle International are shown here: Common stock ($1 par value) 30,000 Capital surplus 285,000 Retained earnings 649180 Total owners’ equity 964180 a. If Quadrangle stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. b. If Quadrangle declared a 25 percent stock dividend, how would the accounts change?
the owners’ equity accounts for Quadrangle International are shown here: Common stock ($1 par value) 30,000 Capital surplus 285,000 Retained earnings 649180 Total owners’ equity 964180 a. If Quadrangle stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. b. If Quadrangle declared a 25 percent stock dividend, how would the accounts change?
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 11P
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the owners’ equity accounts for Quadrangle International are shown here:
Common stock ($1 par value) 30,000 Capital surplus 285,000 Total owners’ equity 964180 |
a. If Quadrangle stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
b. If Quadrangle declared a 25 percent stock dividend, how would the accounts change?
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