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Business, 03.12.2019 04:31 zairaefh3200

On october 31, the stockholders’ equity section of carla vista co.’s balance sheet consists of common stock $352,000 and retained earnings $398,000. carla vista is considering the following two courses of action: (1) declaring a 6% stock dividend on the 88,000 $4 par value shares outstanding (2) effecting a 2-for-1 stock split that will reduce par value to $2 per share. the current market price is $16 per share. prepare a tabular summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares.

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