ACC 291 Week 4 Assignment
E11-15 On October 31, the stockholders' equity section of Omar
Company...

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ACC 291 Week 4 Assignment
E11-15 On October 31, the stockholders' equity section of Omar 
Company consists of common stock $600,000 and retained earnings 
$900,000. Omar is considering the following two courses of action: (1) 
declaring a 5% stock dividend on the 60,000, $10 par value shares 
outstanding, or (2) effecting a 2-for-1 stock split that will reduce par
 value to $5 per share. The current market price is $14 per share.
Instructions
Prepare a tabular summary of the effects of the alternative actions 
on the components of stockholders' equity, outstanding shares, and book 
value per share. Use the following column headings:
Before Action, After Stock Dividend, and After Stock Split.

Robert · Accepted Answer

ACC 291 Week 4 Assignment E11-15 On October 31, the stockholders' equity section of Omar Company 
consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two 
courses of action:  
(1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or  
(2) effecting a 2-for-1 stock split that will reduce par value to $5 per share.  
The current market price is $14 per share. Instructions Prepare a tabular summary of the effects of the 
alternative actions on the components of stockholders' equity,

ACC 291 Week 4 Assignment E11-15 On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two...

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