Concin Has the Following Equity Accounts on Its Balance Sheet

question 137

Multiple Choice

Concin has the following equity accounts on its balance sheet: $\begin{array}{lr}\text { Common stock }(\$ 0.25 \text { par, } 9 \text { million shares }) & \$ 2,250,000 \\\text { Contributed capital in excess of par } & 89,400,000 \\\text { Retain earnings } & 67,503,189 \\&\$159,153,189\end{array}$ The current market price of Concin's stock is $24.25. If the firm declares a 10% stock dividend followed by a $0.06 per share cash dividend, what will be the impact on the Common stock account?

• A) No change
• B) Increase of $225,000
• C) Increase of $54,000
• D) Increase of $21,600,000

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