Problem:
CBA Inc has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%.
Required:
Question: What will be the "capital in excess of par account" after the stock dividend?
Note: Please provide through step by step calculations.