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Question
The Earth Shoe Company, whose stock has a market value of $20, has the following common equity accounts on its balance sheet:| Common stock ($1 par, 1,000,000 shares) | $ 1,000,000 |
| Contributed capital in excess of par | $14,000,000 |
| Retained earnings | $52,000,000 |
| Total Common stockholders' equity | $67,000,000 |
If the firm declares a 5% stock dividend, what will be the "Retained earnings" figure after the dividend is paid?
a. $1,000,000
b. $51,000,000
c. $14,950,000
d. $1,050,000
Answer
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Related questions
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