Answer C11-63 on page 556-557

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Accounting AssignmentWhat did Pillar do with the cash proceeds from the stock dividend issued in December
The cash proceeds from the stock dividend issued in December were used to finance planned plant expansion.
What was my book value per share at the end of 2014 and 2015?
Book value per share at the end of 2014 = (Stake holders equity)/ (Total number of shares issued) = 9,450,000/250,000 =$ 37.8
Book value per share at the end of 2015= (Stakeholders equity)/ (Total number of shares issued) =10,285,000/275,000 = $ 37.4
I owned 7,500 shares of Pillar in 2014 and had not sold any shares. How much more or less of the corporation do I own at December 31, 2015, and what happened to the market value of my interest in the company of the corporation do I own at December 31, 2015, and what happened to the market value of my interest in the company?
The number of shares held=7,500 shares.
Value of company owned in December 2014= (7500 X 37.8) = $ 283,500
Value of the company owned in December 2015= (7500 X 37.4) = $ 280, 500
Value of corporation owned in 2015 is $ 3000 less as 2014.
The market price of the company shares dropped thus leading to a reduction in the value of shares owned. However, the percentage of shareholding has not reduced. Therefore dividends paid have not been affected by the fall in share prices.
heard someone say that stock dividends don’t give me anything I didn’t already have. Why
did you issue one? Are you trying to fool us?
I heard someone say that stock dividends don’t give me anything I didn’t already have.

Why did you issue one? Are you trying to fool us?
Stock dividends issued increases your shares in the company meaning you now own more of the corporation (Thomas et al. 530). Further, you can sell the new shares.
Instead of a stock dividend, why didn’t you declare a cash dividend and let us buy the new shares that were issued
If cash dividends were declared instead of stock dividends and then the shareholders allowed to buy the new shares, the cash dividends will lead a fall in the company share price thus the targeted capital may not be raised.
Why are you cutting back on the dividends I receive?
The dividends received have been reduced to enable the company raise capital to finance a new plant addition. The cash retained will go towards funding the plant expansion.
If you have $2,000,000 put aside in retained earnings for the new plant addition, which will cost $2,300,000, why are you borrowing $500,000 instead of just the $300,000 needed?
The company borrowed $ 500,000 instead of $ 300,000 to cushion the investment against possible market value fluctuations of the company share
Work Cited
Thomas R. Dyckman, Michelle L.
Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Al L. Hartgraves, and Wayne J. Morse.
Thomas R. Dyckman, Michelle L.
Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Al L. Hartgraves, and Wayne J. Morse.
Thomas R. Dyckman, Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Al L. Hartgraves, and Wayne J. Morse. Financial and Managerial Accounting, 2018