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Compute the par value per share before the stock dividend

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Question - On October 1, Little Bobby Corporation's stockholders' equity is as follows:

Common stock, $5 par value $378,000

Paid-in capital in excess of par-common stock 20,000

Retained earnings 158,000

Total stockholders' equity $556,000

On October 1, Little Bobby declares and distributes a 10% stock dividend when the market price of the stock is $15 per share.

Required - Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.

Reference no: EM132825769

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