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How does this impact the shareholders equity accounts

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Question - Stock Dividends and Stock Splits - Stock Dividend -- A payment of additional shares of stock to shareholders. Often used in place of or in addition to a cash dividend.

Small-percentage stock dividends - Typically less than 25% of previously outstanding common stock. Assume a company with 400,000 shares of $5 par common stock outstanding pays a 5% stock dividend. The pre-dividend market value is $40. How does this impact the shareholders' equity accounts?

Reference no: EM133051078

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