ox_Sammy_ox
New member
On October 31, the stockholders' equity section of Omar Company consists of common stock $568,900 and retained earnings $885,700. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 56,890, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share.
I need to complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share. (Round book value per share to 2 decimal places, i.e. $25.58, and round all other answers to 0 decimal places.)
I have to figure out the BEFORE ACTION-- AFTER STOCK DIVIDEND--& AFTER STOCK SPLIT for all of the following....
Stockholders' equity
Paid-in capital
Common Stock
In excess of par value
Total paid-in capital
Retained earnings
Total stockholders' equity
Outstanding shares
Book value per share
I need to complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share. (Round book value per share to 2 decimal places, i.e. $25.58, and round all other answers to 0 decimal places.)
I have to figure out the BEFORE ACTION-- AFTER STOCK DIVIDEND--& AFTER STOCK SPLIT for all of the following....
Stockholders' equity
Paid-in capital
Common Stock
In excess of par value
Total paid-in capital
Retained earnings
Total stockholders' equity
Outstanding shares
Book value per share