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The High-Div Company Is Paying a $1

Question 70

Multiple Choice

The High-Div Company is paying a $1.50 per share dividend today.There are 200,000 shares outstanding with a par value of $1.00 per share.As a result of this dividend,the:


A) retained earnings will decrease by $300,000.
B) retained earnings will decrease by $150,000.
C) common stock account will decrease by $300,000.
D) common stock account will decrease by $150,000.
E) capital in excess of par value account will decrease by $150,000.

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