Oriole Inc is considering one of three options: (1) paying a S0.43 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 4-for-1 stock split. The current fair value is $16 per share. Help Oriole decide what to do by completing the following chart (treat each possibility independentiy): Before Action After Cash Dividend After Stock Dividend After Stock Split $1.921,000 Total assets Total $69,000 liabilities Common 1,064,000 shares Retained 788,000 earnings Total shareholders 1.852,000 equity Total liabilities and shareholders $1.921,000 %24 equity Number of common 56,000 shares

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
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Oriole Inc is considering one of three options: (1) paying a $0.43 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a
4-for-1 stock split. The current fair value is $16 per share.
Help Oriole decide what to do by completing the following chart (treat each possibility independentiy):
Before
Action
After Cash Dividend
After Stock Dividend
After Stock Split
$1921,000
Total assets
Total
$69,000
liabilities
Common
1,064,000
shares
Retained
788,000
earnings
Total
shareholders'
1.852,000
equity
Total
liabilities and
$1.921,000
24
shareholders
equity
Number of
common
56,000
shares
Transcribed Image Text:Oriole Inc is considering one of three options: (1) paying a $0.43 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 4-for-1 stock split. The current fair value is $16 per share. Help Oriole decide what to do by completing the following chart (treat each possibility independentiy): Before Action After Cash Dividend After Stock Dividend After Stock Split $1921,000 Total assets Total $69,000 liabilities Common 1,064,000 shares Retained 788,000 earnings Total shareholders' 1.852,000 equity Total liabilities and $1.921,000 24 shareholders equity Number of common 56,000 shares
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