Concin has the following equity accounts on its balance sheet:

The current market price for a share of Concin's stock is $24.25.If the firm declares a 10% stock dividend and a $0.06 per share cash dividend, what will be the impact on Common stock on the above equity account?
A)no change
B)increase of $225,000
C)increase of $54,000
D)increase of $21,600,000

Question

Concin has the following equity accounts on its balance sheet:

The current market price for a share of Concin's stock is $24.25.If the firm declares a 10% stock dividend and a $0.06 per share cash dividend, what will be the impact on Common stock on the above equity account?
A)no change 
B)increase of $225,000 
C)increase of $54,000 
D)increase of $21,600,000

Quizplus · Accepted Answer

Increase = 9,000,000(0.10)(0.25) = $225,000

Concin Has the Following Equity Accounts on Its Balance Sheet