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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 Skysong, Inc.'s balance sheet consists of common stock $820,000 and retaine earnings $863,000. Skysong is considering the following two courses of action: (1) declaring a 4% stock dividend on the 82,000 $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 mark price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding share.

Reference no: EM132849692

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