Johore Trading Company has 2.4 million shares of common stock outstanding, and the present market… 1 answer below »

Johore Trading Company has 2.4 million shares of common stock outstanding, and the present market price per share is $36. Its equity capitalization is as follows:

Common stock ($2.00 par; 2,400,000 shares)

$ 4,800,000

Additional paid-in capital

5,900,000

Retained earnings

87,300,000

Total shareholders’ equity

$98,000,000

a. If the company were to declare a 12 percent stock dividend, what would happen to these accounts? A 25 percent stock dividend? A 5 percent stock dividend?

b. If, instead, the company declared a 3-for-2 stock split, what would happen to the

"Is this question part of your assignment? We can help"

ORDER NOW