BA Inc. has 400,000 shares outstanding with a $5 par value. The etained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. What will be the "capital in exc after the stock dividend? Mumple Choice $7.685.000 $2.685.000 $3,496,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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CBA Inc. has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5.000.000 in
retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. What will be the "capital in excess of par account
after the stock dividend?
Mumple Choice
O
O
$7.685.000
$2.685.000
$3,496,000
$2.385,000
Transcribed Image Text:CBA Inc. has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5.000.000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. What will be the "capital in excess of par account after the stock dividend? Mumple Choice O O $7.685.000 $2.685.000 $3,496,000 $2.385,000
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