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Verbal Communications has 18,400 shares of stock outstanding with a par value of $1 per share and a market value of $43 per share. The firm just announced a stock dividend of 100 percent. What is the market value per share after the dividend?

Respuesta :

TomShelby

Answer:

$43 dollars

Explanation:

The company will issue the shares and these will have the same value as the market shares as they will be given to the stockholders and the accounting will represent that:

18,400 shares x 100% = 18,400 new shares

18,400 x $1 =            18,400 common stock

18,400 x $43 =       791,200 market value

additional paid.in  772.800‬

the entry will decrease retained earnings for the market value and credit the equity accounts to maintaint the market value.