Wildhorse Inc. is considering one of three options: (1) paying a $0.53 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 3-for-1 stock split. The current fair value is $15 per share.
Help Wildhorse decide what to do by completing the following chart (treat each possibility independently):
Before Action
After Cash Dividend
After Stock Dividend
After Stock Split
Total assets $1,859,000
Total liabilities $68,000
Common shares 1,120,000
Retained earnings 671,000
Total shareholders' equity 1,791,000
Total liabilities and shareholders' equity $1,859,000
Number of common shares 56,000
