Blossom Company has had 4 years of net income. Due to this success, the market price of its 300,000 shares of $5 par value common stock has increased from $12 per share to $51. During this period, paid-in capital remained the same at $4410,000. Retained earnings increased from $1,900,000 to $12,600,000. President E. Rife is considering either a 18% stock dividend or a 2-for-1 stock split.
He asks you to show the before and after effects of each option on retained earnings.
Retained earnings after stock dividend $
Retained earnings after stock split $
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Blossom Company has had 4 years of net income. Due to this success, the market price of its 300,000...
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