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Question
Excelsior Company's capital structure is as follows:| Common stock ($2 par value, 2,000,000 shares) | $ 4,000,000 |
| Contributed capital in excess of par | 16,000,000 |
| Retained earnings | 23,000,000 |
| Total common stockholders' equity | $43,000,000 |
The current market price of the firm's common stock is $30. If the firm declares a 10% stock dividend, determine the balance in the contributed capital in excess of par and retained earnings accounts.
a. $22,000,000; $17,000,000
b. $21,600,000; $17,000,000
c. $21,600,000; $23,000,000
d. $17,000,000; $22,000,000
Answer
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