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How would dividend affect stockholders equity

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Reference no: EM132773706

Problem 1: A company declared a cash dividend on its common stock on December 15, Year 1, payable on January 12, Year 2. How would this dividend affect stockholders' equity on the following dates?

December 15, December 31, January 12

        Year 1 Year 2 Year 1

A. Decrease No effect Decrease

B. Decrease No effect No effect

C. No effect Decrease No effect

D. No effect No effect Decrease

Reference no: EM132773706

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