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Equity Changes due to Dividend

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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If Daizy Company Net Income is $160,000,000 this year and it pays out half as a dividend, which one of the following ...

Solution Summary

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

$2.19