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Hey, thank you for taking the question, this is in Ontario, Canada financial accounting.


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v Complete the following assignment and submit your work to the Assignment Folder. You may complete your work electronically or by hand. if you complete your work by hand, please ensure that it is legible and that the picture or scan is of sufficient quality to be easily readable. Background Information: ZeroTech Limited is authorized to issue an unlimited number of no par value (NPR!) common shares, and has 100 000 shares outstanding. The business has these balances in its shareholders' equity accounts: Total Equity $420 000 As you can see, the company has enough in its Retained Earnings account to declare a dividend. The board of directors has decided to either pay a $1 per share cash dividend or issue one share for every four shares each shareholder owns. The current market price is $4 per share. Value of Cash Dividend: 100 000 outstanding shares 3'. $1 = $100 000 Value of Stock Dividend: 100 000 .-' 4 x 4 = 25 000 shares @I $4 each = $100 000 What effect does each scenario have on total shareholders' equity? Retained Earnings 120 000 20 000 Total Equity $420 000 $320 000 Reouired:

value-[NP'W common shares, and has 100 What-"Wndinq. The business has these balances in its shareholders' equity accoun'Es'? Total Equity $420 000 As you can see, the company has enough in its Retained Earnings account to declare a dividend. The board of directors has decided to either pay a $1 per share cash dividend or issue one share for : every four shares each shareholder owns. The current market price is $4 per share. Value of Cash Dividend: 100 000 outstanding shares x $1 = $100 000 Value of Stock Dividend: 100 000 i 4 x 4 = 25 000 shares @I $4 each = $100 000 What effect does each scenario have on total shareholders' equity? Retained Earnings 120 000 20 000 120 000 Required: FartA: Assume that you own 800 shares in ZeroTech Limited. Calculate the dividend you would receive from both a cash dividend and a stock dividend. Show your calculations to allow for the 5 awarding of part marks. [8 marks, Application} Part B: As a shareholder, which would you prefer? Explain why (4 marks, Communication for clarity ofexpianafion, 4 marks Thinking for reasoning) in as much detail as possible. i

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You may complete your work electronically or by hand. Background Information: ZeroTech Limited is authorized to issue an unlimited number of no par...
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