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22 February, 19:33

on January 31,2009, Village Bank had 500000 shares of $2 par value common stock outstanding. On that date the company declared a 14% stock dividend when the market price of the stock was $37 per share. The immediate effect of this dividend upon Village Bank was?

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  1. 22 February, 23:20
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    A reduction in retained earnings of $2,950,000.

    $37 (500,000 x. 14) = &2,590,000
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