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Question
Heintz Corp. has just declared a 10% stock dividend. The company's pre-stock dividend common stockholders' equity was as follows:| Common stock ($0.50 par, 10,000,000 shares) | $ 5,000,000 |
| Contributed capital in excess of par | $ 48,000,000 |
| Retained earnings | $ 97,500,000 |
| Total common stockholders' equity | $150,500,000 |
If the common stock of Heintz was selling at $32 a share prior to the stock dividend, what will the retained earnings be after the stock dividend is distributed?
a. $ 65,500,000
b. $118,500,000
c. $ 66,000,000
d. $ 97,500,000
Answer
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