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Equity Theory

The Effects of a Stock Dividend on a Company's Equity Accounts

A company with a stock price of $50.00 and the following equity accounts issues a 5% stock dividend. How will the equity accounts change and what will the new stock price be? Common stock @ $1 par value $200,000<br> Additional paid-in capital $1,800,000<br> Retained income $3,000,000<br> Stockholder's equity