Reformulated Capital Structure. Blake Company’s capital structure on December 30, 20X1, was:
|
Common stock ($1 par, 100,000 shares) |
$100,000 |
|
Paid in capital on common stock |
20,000 |
|
Retained earnings |
680,000 |
|
Total stockholders’ equity |
$800,000 |
The company’s net income for 20X1 was $150,000. It paid out 40 percent of earnings in dividends. The stock was selling at $6 per share on December 30.
Assuming the company declared a 5 percent stock dividend on December 31, what is the reformulated capital structure on December 31?