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Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $ $258,000 $ 657,000 439,000 1,096,000 $1,354,000 $ 100,000 (1) After Cash Dividend $ (2) After Stock Dividend $ $ $ (3) After Stock Split

Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $ $258,000 $ 657,000 439,000 1,096,000 $1,354,000 $ 100,000 (1) After Cash Dividend $ (2) After Stock Dividend $ $ $ (3) After Stock Split

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $258,000 $ 657,000 439,000 1,096,000 $1,354,000 $ 100,000 $ (1) After Cash Dividend $ $ $ (2) After Stock Dividend $ $ $ (3) After Stock Split
Transcribed Image Text:Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $258,000 $ 657,000 439,000 1,096,000 $1,354,000 $ 100,000 $ (1) After Cash Dividend $ $ $ (2) After Stock Dividend $ $ $ (3) After Stock Split
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