In early 2015, the $20 par common stock of Driftwood Construction Company was selling in the range

Question:

In early 2015, the $20 par of Driftwood Construction Company was selling in the range of $100 to $130 per share, with 146,000 shares outstanding. On May 1, 2015, Driftwood's board of directors decided that, effective May 10, 2015, Driftwood stock would be split 2 for 1. Before making the public announcement, the board had to decide whether to do the split as a "true" stock split and reduce the per share to $10 or to accomplish the split through a 100% stock dividend.
Why does Driftwood's board of directors want to double the number of shares outstanding? What factors should Driftwood's board consider in deciding between a true 2-for-1 split and a 100% stock dividend?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...