Question 10 of 10 View Policies Show Attempt History Current Attempt in Progress > 0/1 !!! × A 10% stock dividend will increase the number of shares issued by 12800 (128000 × 10%). At a market price of $30 per share, total paid-in capital will increase by $384000 (12800 shares × $30/share) and retained earnings will decrease by that same amount. Grouper Inc. has retained earnings of $509000 and total stockholders' equity of $2001000. It has 128000 shares of $8 par value common stock outstanding, which is currently selling for $30 per share. What will occur if Grouper declares a 10% stock dividend on its common stock? ● Retained earnings will decrease by $102400 and total stockholders' equity will increase by $102400. O Net income will decrease by $102400. Retained earnings will decrease by $384000 and total paid-in capital will increase by $384000. O Retained earnings will decrease by $384000 and total stockholders' equity will increase by $384000.
Question 10 of 10 View Policies Show Attempt History Current Attempt in Progress > 0/1 !!! × A 10% stock dividend will increase the number of shares issued by 12800 (128000 × 10%). At a market price of $30 per share, total paid-in capital will increase by $384000 (12800 shares × $30/share) and retained earnings will decrease by that same amount. Grouper Inc. has retained earnings of $509000 and total stockholders' equity of $2001000. It has 128000 shares of $8 par value common stock outstanding, which is currently selling for $30 per share. What will occur if Grouper declares a 10% stock dividend on its common stock? ● Retained earnings will decrease by $102400 and total stockholders' equity will increase by $102400. O Net income will decrease by $102400. Retained earnings will decrease by $384000 and total paid-in capital will increase by $384000. O Retained earnings will decrease by $384000 and total stockholders' equity will increase by $384000.
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 22SP
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