contestada

Company has 560,000 shares of $10 par value common stock outstanding. During the year, Zebra declared a 15% stock dividend when the market price of the stock was $30 per share. Four months later Zebra declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

Respuesta :

jepessoa

Answer:

$322,000

Explanation:

The company has 560,000 outstanding stocks with a market price of $30:

If it distributed a 15% stock dividend, it means they issued 15% more stock = 84,000 but it didn't pay any money.

Then it distributed $0.50 per stock = $0.50 x 644,000 stocks = $322,000

Otras preguntas