Excelsior Company's Capital Structure Is as Follows ? the Current Market Price of the Firm's Common Stock

Multiple Choice

Excelsior Company's capital structure is as follows: $\begin{array}{lr}\text { Common stock ( } \$ 2 \text { par value, } 2,000,000 \text { shares) } & \$ 4,000,000 \\\text { Contributed capital in excess of par } & 16,000,000 \\\text { Retained earnings } & 23,000,000\\\text { Total common stockholders' equity }&\$43,000,000\end{array}$ ? The current market price of the firm's common stock is $30. Assuming the firm declares a 10% stock dividend, determine the balance in the contributed capital in excess of par and retained earnings accounts.

A) $22,000,000; $17,000,000
B) $21,600,000; $17,000,000
C) $21,600,000; $23,000,000
D) $17,000,000; $21,600,000