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What is the effect of the stock dividend on the stockholders

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Reference no: EM132742862

Problem - An owner of 2,500 shares of Simmons Company common stock receives a stock dividend of 50 shares.

Required -

a. What is the effect of the stock dividend on the stockholder's proportionate interest ( equity) in the corporation?

b. How does the total equity of 2,550 shares compare with the total equity of 2,500 shares before the stock dividend?

Reference no: EM132742862

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