Cullumber Company has had 4 years of record earnings. Due to this success, the market...
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Accounting
Cullumber Company has had 4 years of record earnings. Due to this success, the market price of its 500,000 shares of $2 par value common stock has increased from $14 per share to $53. During this period, paid-in capital remained the same at $3,000,000. Retained earnings increased from $4,500,000 to $30,000,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2 -for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) par value per share
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