What effect does this dividend have on retained earnings

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Reference no: EM13922992

Lavender, Inc. announces a large stock dividend of 65% of the 3.1 million outstanding shares of common stock. The current price per share is $8.85. Par value of the stock is $0.01 per share. What effect does this dividend have on retained earnings?

$31,000 decrease

$20,150 decrease

$17,832,750 decrease

$11,591,288 decrease

Reference no: EM13922992

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