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Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $31 per share.
Preferred stock $90,000
Common stock ( 11,000 shares at $4 par) $44,000
Paid-in capital in excess of par $297,000
Retained earnings $120,000
Total stockholders' equity $551,000
a. Show the effects on Columbia of a 15% stock dividend.
b. In light of part a, discuss the effects of stock dividend on stockholders' equity.
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