Problemmurphys inc has 75000 shares of stock outstanding, Ask an Expert

Finance

Problem:

Murphy's, Inc. has 75,000 shares of stock outstanding with a par value of $1.00 per share. The market value is $10.00 per share. The balance sheet shows $73,500 in the capital in excess of par account, $75,000 in the common stock account, and $139,500 in the retained earnings account. The firm just announced a 12 percent (small) stock dividend.

Required:

Question 1: What will the balance in the capital in excess of par account be after the dividend?

$58,500
$240,000
$163,500
$145,500
$154,500

Note: Please provide equation and explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149238

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