Effect of Dividends
Elam Enterprises is considering the following three actions regarding its equity.
Action 1: Declaring a 30% stock dividend.
Action 2: Declaring a $12,000 cash dividend.
Action 3: Declaring a 2-for-1 stock split.
Required
Describe whether each action would increase, decrease,or not affectthe following: (1) Total Stockholders’ Equity, (2) Retained Earnings, (3) Contributed Capital, (4) Par Value per Share and (5) Price per Share.
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