Study Question and I'm stumped..
On October 31 the stockholders equity section of a company consists of common stock $800,000 and Retained Earnings $400,000. Company is considering two actions: Declaring 10% stock dividend on the 80,000, $10 par value shares outstanding or effect a 2 for 1 stock split that reduces par value to $5 per share. The current market price is $15 per share. I need to prepare a tabular summary of effects of each choice on the components of Stockholders equity, Outstanding shares, and Book Value Per share using the following column headings: Before Action, After Stock Dividend, After Stock Split. I'm completely lost on these entries with relation to retained earnings. (Brain is FRIED!) Help?