Salty's Seafood has 2,000 shares of $12 par common stock outstanding. During the current year, the company distributed a 10% stock dividend. The market value of the stock at that time was $19/share. After the distribution, Salty's total Stockholders' Equity should increase or decrease by:

Question

Quizplus · Accepted Answer

A stock dividend redistributes shares to existing shareholders based on the number of shares they already own, without changing the total equity of the company. The value of the equity remains the same; it's just that the number of shares increases while the value per share adjusts accordingly.

Salty's Seafood Has 2,000 Shares of $12 Par Common Stock