Stock Dividends The owner's equity accounts for Hexagon International are shown here:
Common stock ($1 par value) $10,000
Capital surplus $ 180,000
Retained earnings $ 586,500
Total owner's equity $ 776,500
a. If Hexagon stock currently sells for $25 per share and a 10% stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
b. If Hexagon declared a 25% stock dividend, how would the accounts change?
Solution Preview
a. If Hexagon stock currently sells for $25 per share and a 10% stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
The number of shares outstanding are 10,000 (common stock is $10,000 with $1 par value so number of shares = 10,000/1=10,000). A 10% stock dividend would mean 10,000X10%=1,000 shares are issued. ...
Solution Summary
The solution explains how to calculate the new shares to be issued under stock dividends and the impact on accounts.
... shares and cash dividend amounts. Assume that you own 3,000 shares of Blueco, Inc.'s common stock and that you currently receive cash dividends of $.42 per ...
... This following posting addresses questions regarding dividend stocks. The solution explains the difference between dividends and stock splits in 260 words. ...
Recording Cash and Stock Dividends. The stockholders' equity section of Warm Ways Inc's balance sheet at January 1, 2011, shows: Preferred dividend, $100 par ...
... 8. Declared a stock dividend. 9. Distributed the stock dividend declared in item 8. ... The entries for stock dividends and stock splits are determined. ...
... earnings per share for common considering preferred dividends. ... earnings per share of common stock for the ... A. The dividend to preferred stockholders was declared ...
... just got paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4.5% per year, indefinitely. ...
