lake101
Mar 6, 2011, 02:56 PM
January 1 2011 X company had 100,000 shares of $0.50 par value common stock outstanding. The market value of X common stock was $18 per share. X retained earnings balance on January 1 was $460,000 during 2010 X had declared and paid cash dividends of $0.75 per share. Net Income for2011 is expected to be $130,000. X has a large loan from OO bank part of the loan agreement stipulates that X must maintain a minimum Retained Earnings balance of $350,000. X Board of Directors is debating whether to declare a stock dividend in addition to its$0.75 per share annual cash dividend. 3 proposals have been presented (1) no stock dividend (2) a 10% stock dividend and (3) a 25% stock dividend...
which of the three proposals do you favor support your answer
Thank you in advance for you help
which of the three proposals do you favor support your answer
Thank you in advance for you help