Stock Dividend and Treasury Share

question 71

Essay

Stock dividend and treasury share
At the beginning of the current year, King Cole, Inc. had 300,000 shares outstanding and total shareholders' equity of $1,200,000. During the year, the company earned profit of $325,000, declared cash dividends of $150,000, distributed a 5% stock dividend of 15,000 shares when the market price of the share was $16 per share, and purchased 3,000 shares of treasury share at a cost of $13 per share. Compute the following at the end of the current year:
(a) Total shareholders' equity:
(b) Number of shares outstanding:
(c) Book value per share:

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Definitions:

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