Concin has the following equity accounts on its balance sheet:
The current market price for a share of Concin's stock is $24.25. If the firm declares a 10% stock dividend and a $0.06 per share cash dividend, what will be the impact on Common stock on the above equity account?
A) no change
B) increase of $225,000
C) increase of $54,000
D) increase of $21,600,000

Question

Concin has the following equity accounts on its balance sheet: 
The current market price for a share of Concin's stock is $24.25. If the firm declares a 10% stock dividend and a $0.06 per share cash dividend, what will be the impact on Common stock on the above equity account?
A) no change 
B) increase of $225,000 
C) increase of $54,000 
D) increase of $21,600,000

Quizplus · Accepted Answer

Solution:
Increase = 9,000,000(.10)(.25) = $225,000

Concin Has the Following Equity Accounts on Its Balance Sheet