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Show the before-and-after effects of the dividend

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Question - The equity section of Blossom Company Ltd. consists of share capital-ordinary (£10 par) £2,490,000 and retained earnings £505,600. A 15% share dividend (37,350 shares) is declared when the market price per share is £14. Show the before-and-after effects of the dividend on the following.

(a) The components of equity before and after.

(b) Shares outstanding before and after.

(c) Par value per share before and after.

Reference no: EM132829309

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