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If a firm has retained earnings of $2.5 million, a common shares account of $4.5 million, and additional paid-in capital of $9.0 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "increase" , "decrease" and "no change" from the dropdown menu.)

Retained earnings to$

Common stock to $

Additional paid-in capital to $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92865548

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