Tabular summary of effects of alternative actions

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On October 31 the stockholders' equity section of Davis Company's balance sheet consists of common stock $648,000 and retained earnings $400,000. Davis is considering the following two courses of action: (1) declaring a 5% stock dividend on the 54,000$12 par value shares outstanding or (2) effecting a 3-for-1 stocksplit that will reduce par value to $4 per share. The current market price is $15 per share.

Complete the tabular summary of the effects of the alternative actions on the company's stockholders' equity, outstanding shares, and book value per share.

Reference no: EM13258527

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