This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Small Stock Dividends Illustrated Small Stock Dividends Illustrated Assume that a company has 1 million shares of $5 par common stock outstanding. It then declares a small stock dividend of 15% of the outstanding shares when the market price of the stock is $30 per share. This small stock dividend has the following financial statement effects: Large Stock Dividends Large Stock Dividends Illustrated To illustrate the effect of a large stock dividend, assume that the company now declares a large stock dividend of 70% of the outstanding shares when the market price of the stock is $30 per share ($5 par value). The large stock dividend will have the followi...
View Full Document
- Spring '08