Business
Business, 15.07.2021 16:20, alyssawilliams4

Swifty Corporation has had 4 years of net income. Due to this success, the market price of its 400,000 shares of $4 par value common stock has increased from $14 per share to $51. During this period, paid-in capital remained the same at $4,230,000. Retained earnings increased from $1,700,000 to $11,400,000. President E. Rife is considering either a 15% stock dividend or a 2-for-1 stock split.

a. He asks you to show the before-and-after effects of each option on retained earnings.

Retained earnings after stock dividend $
Retained earnings after stock split $

b. He asks you to show the before-and-after effects of each option on total stockholders' equity.

Total stockholders' equity after stock dividend $
Total stockholders' equity after stock split $

answer
Answers: 3

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Swifty Corporation has had 4 years of net income. Due to this success, the market price of its 400,0...

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