financial management

Question

i need help of this . a firm has a 750000 shares $ 10 each of premium $2500000 and retained $ 15000000

all before the declaration of dividends . the board of directors declares $ 5 per share cash dividend and a 20% stock dividend .what are the balances in the equity account assuming that the market value of 50%per share .  

Answer 1

 

Retained Earnings is:  The balance in the Equity account AFTER dividends and other distributions are paid to investors.
 
The information as presented in your question is ambiguous and insufficient to fully answer.

 

 

 

 

 

 

 

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