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The Earth Shoe Company, Whose Stock Has a Market Value

Question 25

Multiple Choice

The Earth Shoe Company, whose stock has a market value of $20, has the following common equity accounts on its balance sheet:
The Earth Shoe Company, whose stock has a market value of $20, has the following common equity accounts on its balance sheet: If the firm declares a 5% stock dividend, what will be the retained earnings figure after the dividend is paid? A) $1,000,000 B) $51,000,000 C) $14,950,000 D) $5,000,000
If the firm declares a 5% stock dividend, what will be the retained earnings figure after the dividend is paid?


A) $1,000,000
B) $51,000,000
C) $14,950,000
D) $5,000,000

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