The following represents the stockholder’s equity account of Security Data Company: 0 R Preferred stock R200,000 Common stock (R4 par) R200,000 Paid-in capital in excess of par R350,000 Retained earnings R350,000 Total stockholder’s equity ######## Additional information provided: Current share price R40 Earning Available to Common Shareholders (EACS) R120,000 The firm is considering a 5% stock dividend. A. Rework the stockholder’s equity account for Security Data Company should the firm decide to implement the stock dividend. Current New Preferred stock R200,000 [0,5] Common stock (R4 par) R200,000 [1] Paid-in capital in excess of par R350,000 0 [1] Retained earnings R350,000 [1] Total stockholder’s equity ######## 0.5
The following represents the stockholder’s equity account of Security Data Company: 0 R Preferred stock R200,000 Common stock (R4 par) R200,000 Paid-in capital in excess of par R350,000 Retained earnings R350,000 Total stockholder’s equity ######## Additional information provided: Current share price R40 Earning Available to Common Shareholders (EACS) R120,000 The firm is considering a 5% stock dividend. A. Rework the stockholder’s equity account for Security Data Company should the firm decide to implement the stock dividend. Current New Preferred stock R200,000 [0,5] Common stock (R4 par) R200,000 [1] Paid-in capital in excess of par R350,000 0 [1] Retained earnings R350,000 [1] Total stockholder’s equity ######## 0.5
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...
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The following represents the |
||||
0 | R | |||
R200,000 | ||||
Common stock (R4 par) | R200,000 | |||
Paid-in capital in excess of par | R350,000 | |||
Retained earnings | R350,000 | |||
Total stockholder’s equity | ######## | |||
Additional information provided: | ||||
Current share price | R40 | |||
Earning Available to Common Shareholders (EACS) | R120,000 | |||
The firm is considering a 5% stock dividend. | ||||
A. Rework the stockholder’s equity account for Security Data Company should the firm decide to implement the stock dividend. | ||||
Current | New | |||
Preferred stock | R200,000 | [0,5] | ||
Common stock (R4 par) | R200,000 | [1] | ||
Paid-in capital in excess of par | R350,000 | 0 | [1] | |
Retained earnings | R350,000 | [1] | ||
Total stockholder’s equity | ######## | 0.5 |
|
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