Equity Changes due to Dividend
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The common equity section of Daizy Company balance sheet shows
Common stock (80,000,000 shares @ 5 par value) $400,000,000
Additional paid in capital $1,200,000,000
Retained Earnings $800,000,000
Total common stock holder's equity $2,400,000,000
If Daizy Company Net Income is $160,000,000 this year and it pays out half as a dividend, which one of the following is correct?
A. par value will be $480,000,000
B. Retained Earnings = $960,000,000
C. Total common stockholders equity will be $2,841,000,000
D. Book value per share will be $31.00
E. Earning per share = $1.00.
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Solution Summary
The solution determines what the equity changes due to dividend are for Daizy Company.
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If Daizy Company Net Income is $160,000,000 this year and it pays out half as a dividend, which one of the following ...
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