2. Star, Inc. has retained earnings of $800,000 and total equity of $2,000,000. It has 200,000 ordinary shares with a $5 par value outstanding, which is currently selling for $30 per share. If Ludwick declares a 10% share dividend on its ordinary shares: (3 Points) net income will decrease by $100,000 retained earnings will decrease by $600.000 and total equity will increase by $600,000. retained earnings will decrease by $600.000 and share capital and share premium will increase by $600,000 retained earnings will decrease by $100,000 and total equity will increase by $100.000