The Kleidon King Company has the following shareholders' equity account:

Common stock ($8 par value) $ 2,000,000 Additional paid-in capital 1,600,000 Retained earnings 8,400,000 Shareholders' equity $12,000,000 The current market price of the stock is $60 per share.

a. What will happen to this account and to the number of shares outstanding with (1) a 20 percent "small-percentage" stock dividend?

(2) a 2-for-1 stock split? (3) a 1-for-2 reverse stock split?

b. (1) In the absence of an informational or signaling effect, at what share price should the common sell after the 20 percent stock dividend?

(2) What might happen if there were a signaling effect?