# On October 31, the stockholders' equity section of Heins Company consists of

common stock \$290,000?and retained earnings \$888,000. Heins is considering the following two courses of action: (1) declaring a?4% stock dividend on the?29,000, \$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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ASSIGNMENT
RESOURCES Exercise 11-15
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xercise 11-4 On October 31, the stockholders? equity section of Heins Company consists of common stock \$290,000 and retained earnings \$888,000. Heins is considering the following two courses of action: (1) declaring a 4% stock
Ezem?sell? dividend on the 29,000, \$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.
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m1 Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share.
Exams-2.11:1}
W144 After After
Before Stock Stock
E . _ Z Action Dividend Split
Problem 11_1A Stockholders? equity
LEamLe?Lel Paid-in capital
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Common stock 290000 290000
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Study Object've In excess of par Total paid?in capital
Retained earnings
Total stockholders? equity Outstanding shares Par value per share LINK TO TEXT 290000 883000 1178000 II II II I ?II |K ll 29000 x wt...?.,w1tm.....,m.wm.w. 869440 Ill 1178000 ?9
m 30150 290000 888000 ?Ik Ix?l 1178000 Igl 58000 i \$ VIDEO: SIMILAR ExElasE Question Attempts: 2 of 3 used

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This question was answered on: Apr 19, 2020

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