The following represents the stockholder's equity account of Security Data Company: R Preferred stock Common stock (R4 par) Paid-in capital in excess of par Retained earnings Total stockholder's equity Additional information provided: Current share price Earning Available to Common Shareholders (EACS) The firm is considering a 5% stock dividend. R200,000 R200,000 R350,000 R350,000 R1,100,000 Preferred stock Common stock (R4 par) Paid-in capital in excess of par Retained earnings Total stockholder's equity R40 R120,000 A. Rework the stockholder's equity account for Security Data Company should the firm decide to implement the stock dividend. Current New R200,000 R200,000 R350,000 R350,000 R1,100,000
The following represents the stockholder's equity account of Security Data Company: R Preferred stock Common stock (R4 par) Paid-in capital in excess of par Retained earnings Total stockholder's equity Additional information provided: Current share price Earning Available to Common Shareholders (EACS) The firm is considering a 5% stock dividend. R200,000 R200,000 R350,000 R350,000 R1,100,000 Preferred stock Common stock (R4 par) Paid-in capital in excess of par Retained earnings Total stockholder's equity R40 R120,000 A. Rework the stockholder's equity account for Security Data Company should the firm decide to implement the stock dividend. Current New R200,000 R200,000 R350,000 R350,000 R1,100,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Question 1
Dividend Policy
The following represents the stockholder's equity account of Security Data Company:
R
Preferred stock
Common stock (R4 par)
Paid-in capital in excess of par
Retained earnings
Total stockholder's equity
Additional information provided:
Current share price
Earning Available to Common Shareholders (EACS)
The firm is considering a 5% stock dividend.
R200,000
R200,000
Preferred stock
Common stock (R4 par)
Paid-in capital in excess of par
Retained earnings
Total stockholder's equity
R350,000
R350,000
R1,100,000
R40
R120,000
A. Rework the stockholder's equity account for Security Data Company should the firm decide to implement the stock dividend.
New
Current
R200,000
R200,000
R350,000
R350,000
R1,100,000
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