Ask Question
25 January, 06:00

Marigold Corp. has 493000 shares of $10 par value common stock outstanding. During the year Marigold declared a 14% stock dividend when the market price of the stock was $36 per share. Three months later Marigold declared a $0.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

+4
Answers (1)
  1. 25 January, 08:33
    0
    Answer: $2,821,932

    Explanation:

    No. of shares outstanding before stock dividend = 493,000

    Price per share = $36

    Stock dividend issued (shares issued) = 493,000 x 14% = 69,020

    Value of stocks issued as stock dividend = 69,020 x $36 = $2,484,720

    No. of shares outstanding after stock dividend = 493,000 + 69,020 = 562,020

    Cash dividend = 562,020 x 0.60 = 337,212

    Total reduction in retained earnings = total value of dividend issued

    = $2,484,720+$337,212

    = $2,821,932
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Marigold Corp. has 493000 shares of $10 par value common stock outstanding. During the year Marigold declared a 14% stock dividend when the ...” 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