Business, 07.05.2021 05:00 jadkins842
Novak Corp. has had 4 years of net income. Due to this success, the market price of its 300,000 shares of $5 par value common stock has increased from $11 per share to $54. During this period, paid-in capital remained the same at $4,290,000. Retained earnings increased from $1,790,000 to $12,900,000. President E. Rife is considering either a 17% stock dividend or a 2-for-1 stock split.
He asks you to show the before-and-after effects of each option on
a. retained earnings,
b. total stockholders' equity, and
c. par value per share.
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Novak Corp. has had 4 years of net income. Due to this success, the market price of its 300,000 shar...
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