Golden Inc. is considering one of the three following courses of action: (1) paying a $0.4 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $15 per share.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Golden Inc. is considering one of the three following courses of action: (1) paying a $0.4 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $15 per share.
Before
Action
$1,369,000 $
Bers' equity
$240,000 $
586.000
543.000
1.129.000
$1,369.000
100,000
$
After Cash
Dividend
$
$
After Stock
Dividend
$
$
After
Stock Split
23°C Sunny
^ENG
10:1
7/30/
Transcribed Image Text:Before Action $1,369,000 $ Bers' equity $240,000 $ 586.000 543.000 1.129.000 $1,369.000 100,000 $ After Cash Dividend $ $ After Stock Dividend $ $ After Stock Split 23°C Sunny ^ENG 10:1 7/30/
Total assets
Total liabilities
Shareholders' equity
Common shares
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
Number of common shares
e here to search
5:
Before
Action
$1,369,000
D
$240,000
586,000
543,000
1,129.000
$1.369.000
100,000
$
$
$
After Cash
Dividend
$
After Stock
Dividend
23°C Sunny
mun
^ ENG
Transcribed Image Text:Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares e here to search 5: Before Action $1,369,000 D $240,000 586,000 543,000 1,129.000 $1.369.000 100,000 $ $ $ After Cash Dividend $ After Stock Dividend 23°C Sunny mun ^ ENG
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