Blossom Developments is authorized to issue 500,000 shares. To date, the company has 178,600 shares issued and 142,700 outstanding, Blossom is considering declaring a dividend to its common shareholders. Management is recommending that the board of directors consider the following options at the next meeting, scheduled for March 1: 1. 2. The board of directors should approve a motion directing the company to pay a dividend of $0.50 per share on May 1 to shareholders of record on April 15; or The board should approve a motion directing the company to declare a 10% stock dividend. Blossom would distribute 1 common share for every 10 common shares currently held. The company's common shares are currently selling for $47 per share.

Blossom Developments is authorized to issue 500,000 shares. To date, the company has 178,600 shares issued and 142,700 outstanding, Blossom is considering declaring a dividend to its common shareholders. Management is recommending that the board of directors consider the following options at the next meeting, scheduled for March 1: 1. 2. The board of directors should approve a motion directing the company to pay a dividend of $0.50 per share on May 1 to shareholders of record on April 15; or The board should approve a motion directing the company to declare a 10% stock dividend. Blossom would distribute 1 common share for every 10 common shares currently held. The company's common shares are currently selling for $47 per share.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 25P: The controller of Red Lake Corporation has requested assistance in determining income, basic...

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