Excelsior Company's capital structure is as follows:

Common stock ($2 par value, 2,000,000 shares) $ 4,000,000

Contributed capital in excess of par 16,000,000

Retained earnings 23,000,000

Total common stockholders' equity $43,000,000

The current market price of the firm's common stock is $30. Assuming the firm declares a 10% stock dividend, determine the balance in the contributed

capital in excess of par and retained earnings accounts.
A) $22,000,000; $17,000,000
B) $21,600,000; $17,000,000
C) $21,600,000; $23,000,000
D) $17,000,000; $21,600,000


B

Business

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