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Business, 10.03.2020 05:05 linag969p9xeno
Exercise 14-04 On October 31, the stockholders’ equity section of Cullumber Company consists of common stock $370,000 and retained earnings $904,000. Cullumber is considering the following two courses of action: (1) declaring a 6% stock dividend on the 37,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders’ equity, outstanding shares, and par value per share.
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Exercise 14-04 On October 31, the stockholders’ equity section of Cullumber Company consists of comm...
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