The Weston Company's balance sheet has the following capital section.  Weston's stock is currently selling for $5 per share.   Common Stock (50,000 shares at $1 par)                  $50,000 Capital in Excess of Par                                                   50,000 Retained Earnings                                                          100,000                                                                                         $200,000 The firm plans to declare a 2 for 1 stock split. Show the relevant section of the Balance sheet after this.   Common Stock (______ )  shares at  $_________   par)      $_________         Capital in Excess of Par                                                        _________                                  Retained Earnings                                                                 __________                                 Total                                                                                     $ __________                                          and If the firm declared a 10% stock dividend instead of doing the stock split, what would the relevant section of the balance sheet look like?  Common Stock (_________ )  shares at  $_______par)   $__________                 Capital in Excess of Par                                                     __________                                                      Retained Earnings                                                           ___________                                     Total                                                                               $ _____ _ ____

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
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Please answer the following questions that has ____________

 

The Weston Company's balance sheet has the following capital section.  Weston's stock is currently selling for $5 per share.

 

Common Stock (50,000 shares at $1 par)                  $50,000

Capital in Excess of Par                                                   50,000

Retained Earnings                                                          100,000

                                                                                        $200,000

The firm plans to declare a 2 for 1 stock split. Show the relevant section of the Balance sheet after this. 

 Common Stock (______ )  shares at  $_________   par)      $_________        

Capital in Excess of Par                                                        _________                                 

Retained Earnings                                                                 __________

                               
Total                                                                                     $ __________                                       

 

and

If the firm declared a 10% stock dividend instead of doing the stock split, what would the relevant section of the balance sheet look like?

 Common Stock (_________ )  shares at  $_______par)   $__________                

Capital in Excess of Par                                                     __________                                                  

   Retained Earnings                                                           ___________

                                
   Total                                                                               $ _____ _ ____         

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