On October 1, Oriole Corporation's stockholders' equity is as follows. Common stock, $7 par value $535,500 Paid-in capital in excess of par-common stock 30,000 Retained earnings 167,000 Total stockholders' equity $732,500 On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share. (a) X Your answer is incorrect. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend. Par value before the stock dividend 9.58 Par value after the stock dividend 2$ 8.71
On October 1, Oriole Corporation's stockholders' equity is as follows. Common stock, $7 par value $535,500 Paid-in capital in excess of par-common stock 30,000 Retained earnings 167,000 Total stockholders' equity $732,500 On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share. (a) X Your answer is incorrect. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend. Par value before the stock dividend 9.58 Par value after the stock dividend 2$ 8.71
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On October 1, Oriole Corporation's stockholders' equity is as follows.
Common stock, $7 par value
$535,500
Paid-in capital in excess of par-common stock
30,000
Retained earnings
167,000
Total stockholders' equity
$732,500
On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.
(a)
X Your answer is incorrect.
Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
Par value before the stock dividend
2$
9.58
Par value after the stock dividend
2$
8.71
Expert Solution
Step 1
Par Value remains same before or after stock dividend.
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