Task: Omega Sports has the following equity accounts on its balance sheet:
Common stock ($.50 par, 900,000 shares)
$ 450,000
Paid in excess
5,580,000
Retained earnings
21,204,000
Total common stockholders' equity
$27,234,000
The current market price of the firm's shares is $20. If the firm declares a 10 percent stock dividend followed by a cash dividend of $0.10 per share, the retained earnings account would change to
a. $21,060,000
b. $19,305,000
c. $25,335,000
d. $19,404,000
Please show step by steps instruction