Samantha Fish's Seafood, Inc., has retained earnings of $20 million, a common shares eo million, and additional paid-in-capital of $15 million. What would be the percentage change to retained earnings in response to a 15% stock dividend? 30% would be transferred out of retained earnings 30% would be transferred into retained earnings O 15% would be transferred into retained earnings 15% would be transterred out of retained earnings.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5P
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Samantha Fish's Seafood, Inc., has retained earnings of $20 million, a common shares account of $25
million, and additional paid-in-capital of $15 million. What would be the percentage change to
retained earnings in response to a 15% stock dividend?
30% would be transferred out of retained earnings
30% would be transferred into retained earnings
O 15% would be transferred into retained earnings
15% would be transferred out of retained earnings.
Transcribed Image Text:Samantha Fish's Seafood, Inc., has retained earnings of $20 million, a common shares account of $25 million, and additional paid-in-capital of $15 million. What would be the percentage change to retained earnings in response to a 15% stock dividend? 30% would be transferred out of retained earnings 30% would be transferred into retained earnings O 15% would be transferred into retained earnings 15% would be transferred out of retained earnings.
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