Market value of equity is equal to book value of equity

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Reference no: EM132044278

If a firm has retained earnings of $4.0 million, a common shares account of $6.0 million, and additional paid-in capital of $12.0 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity.

(Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "increase" , "decrease" and "no change" from the dropdown menu.)

Retained earnings Increase or decrease or no change $

Common Stock Increase or decrease or no change $

Additonal Paid-in-capital Increase or decrease or no change $

Reference no: EM132044278

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