> Stock Dividends and stockholders' equity?

Stock Dividends and stockholders' equity?

Posted at: 2014-12-05 
The answer is ZERO. A stock dividend only increases the number of shares, but simultaneously decreases the value of each share by a corresponding amount. Each individual shareholder still owns the identical percentage of ownership of the company he had before the stock split.

a corporation had 30,000 shares of $10 par value common stock issued and outstanding. the corporation declared and distributed a 10% stock dividend. That market value of the sock was $24. as a result of this dividend, the total stockholders's equity should Increase or decrease by:

$30000

$42000

$0

-$72000