Stock Dividends The Company with the common equity accounts shown here has declared a stock dividend of 15 percent when the market value of its stock is $64 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1 par value) $ 225,000 Capital Surplus  535,000 Retained Earnings  2,968,500 Total owners' equity  $3,728,500

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Stock Dividends The Company with the common equity accounts shown here has declared a stock dividend of 15 percent when the market value of its stock is $64 per share. What effects on the equity accounts will the distribution of the stock dividend have?

Common stock ($1 par value)

$ 225,000

Capital Surplus  535,000
Retained Earnings  2,968,500
Total owners' equity  $3,728,500
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