Following is the shareholders' equity section of all-wood doors on a day its common stock is trading at S130 per share. Common stock ($2 pare value, 40,000 shares issued and outstanding) 80,000 Additional paid in capital 1,600,000 Retained Earnings 3,000,000 Use the financial statement template below to show the financial statement effects of the following dividend events.
1) cash dividend declaration and payment of $1 per share 3) property dividend declaration and payment of shares representing a short-term investment in Screen Products with a fair value of 10,000 3) 10 % stock dividends 4) 100% stock dividends 5) 3 for 1 stock split 6) 1 for 2 reverse stock split B) which events changed the book value of common equity? Under what conditions will these events lead to future increases and decreases of ROE?