A company declares a 40% stock dividend when there were 4 million common shares outstanding with a $1 par value. The current market price is $20 per common share. Which of the following will be the effect of the stock dividend?
A. Retained earnings will decrease by $1.6 million and contributed capital will increase by $1.6 million.
B. Contributed capital will decrease by $1.6 million and retained earnings will increase by $1.6 million.
C. Retained earnings will decrease by $32 million and contributed capital will increase by $32 million.
D. Contributed capital will decrease by $32 million and retained earnings will increase by $32 million.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company declares a 40% stock dividend when there were 4 million common shares outstanding with a $1 par value. The current market price ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Average fixed costs for a given level of output can be determined graphically by: A. summing the marginal costs of any number of units of output and dividing the sum by that output. B. the vertical distance between TC and TVC. C.
Answers (1)
Diversification is important in investing because ...
Answers (1)
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. E (Rp) 12.00 % Standard Deviation of P 7.20 % T-Bill rate 3.
Answers (1)
Pursuant to a complete liquidation in the current year, Scarlet Corporation distributes to Jake land (basis of $425,000, fair market value of $390,000) that was purchased three years ago and held as an investment.
Answers (1)
On January 1, 2020, Waterway Company sold 11% bonds having a maturity value of $700,000 for $783,845, which provides the bondholders with a 8% yield.
Answers (1)
New Questions in Business
You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. O True O False
Answers (1)
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Finished goods $ 46,000 $ 50,000 Additional information: Direct materials $ 57,000 Direct labor cost $ 87,000 Manufacturing
Answers (1)
Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. (Leave no cells blank - be sure to enter "0" wherever required.) A $25,000 cash gift from her parents.
Answers (1)
Analysis of daily output of a factory during a 8-hour shift shows that the hourly number of units y produced after t hours of production is
Answers (1)
In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent.
Answers (1)