Cat's Has 41,800 Shares of Stock Outstanding with a Par

question 1

Multiple Choice

Cat's has 41,800 shares of stock outstanding with a par value of $1 per share and a market value of $13.57 per share.The balance sheet shows $41,800 in the common stock account,$247,900 in the capital in excess of par value account,and $308,500 in retained earnings.The firm just announced a large stock dividend of 50 percent.What is the value of the retained earnings account after the dividend?

• A)$287,600
• B)$268,500
• C)$24,887
• D)$45,787
• E)$308,500

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