Question 5
3 pts
Over the past eight years since its formation, when it listed its shares on the Toronto Stock
Exchange, Baidu corporation has had a significant increase in its net income. Due to this success, the
price of its 500,000 common shares tripled from $20 per share to $60 per share. During this period,
the Common Shares account remained the same at $10 million. The Retained Earnings increase
from $2 million to $13 million. Suppose, the president of the company Qi Lu is considering a 10%
stock dividend and looking for help from COMM 293 students.
Answer these questions AFTER the dividend is declared and distributed.
Do NOT use units, spaces or commas in your answer. To enter 1000000, simply enter 1000000 and not
1,000,000 or 1,000,000.00
a. What is the number of shares outstanding? ?
b. What is the balance in the Common Shares account??$
c. What is the balance in the Retained Earnings account? ? $