Crane Inc. is considering one of three options: (1) paying a $0.49 cash dividend, (2)...
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Accounting
Crane Inc. is considering one of three options: (1) paying a $0.49 cash dividend, (2) distributing a 3% stock dividend, or (3) effecting a 4-for-1 stock split. The current fair value is $13 per share. Help Crane decide what to do by completing the following chart (treat each possibility independently):
Before action
After Cash Dividend
After Stock Dividend
After Stock Split
Total Assets
$1,827,000
Total Liabilities
$84,000
Common Shares
1,260,000
Retained Earnings
483,000
Total Shareholders' Equity
1.743.000
Total Liabilities and Shareholders' equity
$1,827,000
Number of common shares
63,000
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