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Prepare the shareholders equity section for each alternative

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Reference no: EM132617453

At the end of 20X6, Home Ltd. reported the following in shareholders' equity:

Common shares, no-par value; authorized, unlimited shares; issued, 14,810,000 shares$19,333,000

Retained earnings 53,220,000 $72,553,000

At this time, the shares were trading in the range of $4 to $6 per share on public stock markets. The company's board of directors is contemplating two alternative courses of action:

Declaring a 50% stock dividend, or
Executing a 3-for-2 stock split.

Required:

Problem 1. Prepare the shareholders' equity section for each alternative, assuming that market value is used to capitalize the stock dividend.

Reference no: EM132617453

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