Stock Dividend-Effect on Book Value
Olympic Corporation Has 75,000 Shares $\underline{\quad\quad}$

question 103

Essay

Stock dividend-effect on book value
Olympic Corporation has 75,000 shares of $1 par value share outstanding. The largest single shareholder is Lou Cheng, who owns 6,000 shares. On December 31, the total assets of the company amount to $4,360,000 and total liabilities to $2,230,000. On that date, the board of directors declared a stock dividend of one new share for each five shares outstanding. Compute the following:
(a) Book value per share before the stock dividend $ $\underline{\quad\quad}$ per share
(b) Bodk value per share after stock dividend $\$$$\underline{\quad\quad}$ per share
(c) Total book value of Lou Cheng 's shareholdings per share before the stock dividend $\$$$\underline{\quad\quad}$
(d) Total book value of Lou Cheng 's shareholdings after the stock dividend $\$$$\underline{\quad\quad}$

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