How many shares are outstanding after the dividend


Samson Corporation's common stock is priced at $30.50 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows.

Common stock-$8 par value, 80,000 shares authorized, 32,000 shares issued and outstanding $ 256,000

  • Paid-in capital in excess of par value, common stock 100,000
  • Retained earnings 356,000

Total stockholders' equity $ 712,000.The company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. Answer these questions about stockholders' equity as it exists after issuing the new shares.How many shares are outstanding after the dividend?

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Accounting Basics: How many shares are outstanding after the dividend
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