On August 1, 2018, Omega Co. declared and issued a 30 percent common stock dividend. Prior to this, Omega Co. had 50,000 outstanding shares of $2 par value common stock. The market value of Omega Co.'s stock was $18 per share at the time the dividend was issued. As a result of this stock dividend, Omega Co.'s total stockholders' equity ________.

Question

Quizplus · Accepted Answer

A stock dividend does not change the total stockholders' equity; it only transfers amounts within equity accounts.