Question
question 16-13 please provide full solution
2011 2.05 1.25 2012 2.25 1.30 Based on the Sabah Industries' historical dividend policy trend, discuss whether a constant payout ratio of 60% would benefit shareholders. 16-13 The Johor Farms current stockholders' equity account shows the following information $150,000 Common stock (50,000 shares at $3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity 250,000 450,000 $850000 As part of its stock dividend plan, Johor Farms had announced plans to issue an additional 5,000 shares of common stock. The current market price of Johor Farms common stock is $20 per share. Please show how the proposed stock dividend would affect the stockholders' equity account. hu tha fon management of Malawati Inc., the firm wishes to pur
Explanation / Answer
After issue of 5000 shares ,total common stock =$5000×3+150000=$165000
Paid in capital=$5000×17+250000=$335000
Retained earnings=450000
Total shareholders equity=$950000.
Thank you.
