Spears Company has had 4 years of record earnings. Due to this success, the market price of its 400,000 shares of \(\$ 2\) par value common stock has increased from \(\$ 6\) per share to \(\$ 50\). During this period, paid-in capital remained the same at \(\$ 2,400,000\). Retained earnings increased from \(\$ 1,800,000\) to \(\$ 12,000,000\). CEO Don Ames is considering either (1) a \(15 \%\) stock dividend or (2) a 2 -for-1 stock split. He asks you to show the before-and-after effects of each option on

(a) retained earnings,

(b) total stockholders' equity, and

(c) par value per share.