$5.$ Stock dividends and stock splits

Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases.

Consider the following case:

Happy Monkey Manufacturing currently has $30,000$ shares of common stock outstanding. Its management believes that its current stock price of $$95$ per share is too high. The company is planning to conduct stock splits in the ratio of $3$ for $1$ as described in the animation.

If Happy Monkey Manufacturing declares a $3-$for$-1$ stock split, the price of the company$$s stock after the split, assuming that the total value of the firm$$s stock remains the same after the split, will be $.$

Scorecard Athletics Corp. is one of Happy Monkey$$s leading competitors. Scorecard$$s market intelligence research team shares Happy Monkey$$s plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Scorecard decide to offer stock dividends to its shareholders.

Scorecard currently has $1,300,000$ shares of common stock outstanding.

If the firm pays a $4\%$ stock dividend, what will be the total number of shares outstanding after the stock dividend?

$1,690,000$ shares

$1,216,800$ shares

$1,149,200$ shares

$1,352,000$ shares