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
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
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 11P
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Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d1172b0-f995-498e-8ccc-349d8eccb717%2F8e717718-ce97-4656-943a-991576a1c618%2Fvyf2pq_processed.jpeg&w=3840&q=75)
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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