Shares outstanding with a par value

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Alpha Company is paying a $1.50 per share dividend today. There are 200,000 shares outstanding with a par value of $1 per share. As a result of this dividend, the:

retained earnings will decrease by $300,000.

retained earnings will decrease by $150,000.

common stock account will decrease by $300,000.

common stock account will decrease by $150,000.

capital in excess of par value account will decrease by $150,000.

Reference no: EM13947304

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