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Prepare tabular summary of effects of alternative actions

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Question - On October 31, the stockholders' equity section of Heins Company consists of common stock $370,000 and retained earnings $904,000. Heins is considering the following two courses of action: (1) declaring a 6% stock dividend on the 37,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share.

Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share.

Reference no: EM132081241

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