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What is the effect of the stock dividend

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Reference no: EM132683152

Problem - An owner of 1,000 shares of Simmons Company common stock receives a stock dividend of 6 shares.

Required -

a. What is the effect of the stock dividend on the stockholder's proportionate interest (equity) in the corporation?

b. How does the total equity of 1,006 shares compare with the total equity of 1,000 shares before the stock dividend?

Reference no: EM132683152

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