Discuss effects of stock dividends on stockholders equity

Reference no: EM13282760

Columbia paper has the following stockholders equity account. The firm's common stock has a current market price of $30 per share.

Preferred stock $100,000
Common stock (400,000 shares at $2 par) $20,000
paid-in capital in excess of par $ 280,000
Retained earnings $, 100,000
Total stockholders equity $500,000

A. show the effects on Columbia of a 5% stock dividend?

B. Show the effects of (1) A 10% AND (2) A 20% stock dividend

C. In light of your answers to parts a and b, discuss the effects of stock dividends on stockholders equity.

Reference no: EM13282760

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