Jinay Company declares a 50% large stockdividend when there were 5.4 million commonshares outstanding with a $1 par value. Thecurrent market price is $27 per common share.Which of the following will be the effect ofJinay's stock dividend?Multiple ChoiceRetained earnings will decrease by $2.70 millionand common stock will increase by $2.70 million.Retained earnings will decrease by $72.90million and common stock will increase by$72.90 million.Retained earnings will decrease by $72.90million, common stock will increase by $72.90million and additional paid-in capital willincrease by $30.4 million.Retained earnings will decrease by $2.70 millionand additional paid-in capital will increase by$2.70

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Jinay Company declares a 50% large stock dividend when there were 5.4 million common shares outstanding with a $1 par value. The current market price is $27 per common share. Which of the following will be the effect of Jinay's stock dividend? Multiple Choice Retained earnings will decrease by $2.70 millio and common stock will increase by $2.70 millio Retained earnings will decrease by $72.90 million and common stock will increase by $72.90 million. Retained earnings will decrease by $72.90 million, common stock will increase by $72.90

Jinay Company declares a 50% large stock dividend when there were 5.4 million common shares outstanding with a $1 par value. The current market price is $27 per common share. Which of the following will be the effect of Jinay's stock dividend? Multiple Choice Retained earnings will decrease by $2.70 millio and common stock will increase by $2.70 millio Retained earnings will decrease by $72.90 million and common stock will increase by $72.90 million. Retained earnings will decrease by $72.90 million, common stock will increase by $72.90

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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