On October 31, the stockholders' equity section of Carla Vista Co's balance sheet consists of...
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Accounting
On October 31, the stockholders' equity section of Carla Vista Co's balance sheet consists of common stock $704,000 and retained earnings $398,000. Carla Vista is considering the following two courses of action: (1) declaring a 6% stock dividend on the 88,000 , $8 par value shares outstanding or (2) effecting a 2 -for-1 stock split that will reduce par value to $4 per share. The current market price is $16 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders equity and outstanding shares
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