P14-3A Ecker Enterprises is ideally positioned in the clothing business. Located in Lansing. Michigan, Ecker is the only company with a distribution network for its imported goods. The company does a brisk business with specialty stores such as Neiman Marcus, Saks Fifth Avenue, and Nordstrom. Ecker's recent success has made the company a prime target for a takeover. Against the wishes of Ecker's board of directors, an investment group from Detroit is attempting to buy 51% of Ecker's outstanding stock. Board members are convinced that the Detroit investors would sell off the most desirable pieces of the business and leave little of value. At the most recent board meeting, several suggestions were advanced to fight off the hostile takeover bid. One suggestion is to increase the stock outstanding by distributing a 100% stock dividend. Required As a significant stockholder of Ecker Corporation, write a short memo to explain to the board whether distributing the stock dividend would make it more difficult for the investor group to take over Ecker Corporation. Include in your memo a discussion of the effect that the stock dividend would have on assets, liabilities, and total stockholders' equity-that is, the dividend's effect on the size of the corporation.