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How to show the before-and-after effects of the dividend

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Question 1: The stockholders' equity section of Vaughn Corporation consists of common stock ($10 par) $2,600,000 and retained earnings $531,000. A 10% stock dividend (26,000 shares) is declared when the market price per share is $15. Show the before-and-after effects of the dividend on the following.

(a) The components of stockholders' equity.

(b) Shares outstanding.

(c) Par value per share.

Reference no: EM132606938

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