Im so sure but I can help you later just give me a few minutes
I<span>n this problem, the market net worth of the stocks of Tangshan mining is $5,000,000 (100,000 shares x $50.00 per share). The stock split would not affect the price of the stock. This transaction would only affect the number of shares of the company. Since this is a 3-for-2 stock split, this is clearly a split </span>up.<span> Therefore, this transaction would increase the number of shares while reducing its price per share. The shares would become 150,000 shares now ({100,000 shares/2} x 3). To get the current price of the share, you just need to divide $5,000,000 by the new number of shares which </span>is<span> 150,000 shares. You would then get $33.33 per share.</span>
Answer:
$27,600
Explanation:
Amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend:
= Shares issued * Percentage of stock dividend * Market price
= 46,000 shares * 2% * $30
= 46000*0.02*$30
= $27,600
I would say that it would be the <u>rate of return</u> but i might be wrong