The company Tabaco Inc. with the shareholders equity shown below declares a stock dividend of 16 percent.
The market value of its common stock is €110 per share, while the par value is 3.
Common stock 100.000 €
Capital surplus 2.450.000 €
Retained earnings 1.000.000 €
Total owners’ equity 3.550.000 €
How many shares are they going to issue?
What is the new statement of shareholders Equity?
