A corporation declared a cash dividend on its ordinary shares on Dec. 15, 2018, payable on Jan. 12, 2019. How would this dividend affect shareholders’ equity on the following dates? dec. 15, 2018        Dec 31, 2018        Jan. 12, 2019 A. Decrease             No effect              Decrease B. Decrease             No effect              No effect C. No effect             Decrease              No effect D. No effect            No effect              Decrease explain why the other choices are not the answers.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.