Change in retained earnings account

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Reference no: EM1361934

Omega Sports has the following equity accounts on its balance sheet:

Common stock ($.50 par, 900,000 shares)
$ 450,000

Paid in excess
5,580,000

Retained earnings
21,204,000

Total common stockholders' equity
$27,234,000

The current market price of the firm's shares is $20. If the firm declares a 10 percent stock dividend followed by a cash dividend of $0.10 per share, the retained earnings account would change to

a.
$21,060,000

b.
$19,305,000

c.
$25,335,000

d.
$19,404,000

Reference no: EM1361934

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