Multiple Choice
On August 1, 2018, Omega Co. declared and issued a 30 percent common stock dividend. Prior to this, Omega Co. had 50,000 outstanding shares of $2 par value common stock. The market value of Omega Co.'s stock was $18 per share at the time the dividend was issued. As a result of this stock dividend, Omega Co.'s total stockholders' equity ________.
A) increased by $15,000
B) decreased by $135,000
C) decreased by $7,500
D) did not change
Correct Answer:
Verified
Correct Answer:
Verified
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