Stock Dividend-Effect on Book Value

question 35

Essay

Stock dividend-effect on book value
Olympic Corporation has 75,000 shares of $1 par value stock outstanding.The largest single stockholder 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:

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Definitions:

Flash Drive

A portable storage device that uses flash memory and can be connected to a computer through a USB port.

Executable File

A type of computer file that, when opened, instructs the operating system to perform specific actions or run a program.

Nonvolatile

Referring to a type of computer memory that retains data even when the power is turned off.

ROM

Read-Only Memory, a type of non-volatile storage that is used to store firmware or software that is rarely changed or updated.