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: Tolbotics Inc. currently has 10,000 shares of common stock outstanding. Its management believes that its current stock price of $105 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation or eertificate Slech $12 11 Tolbotics Inc dedares a 1-for-1 stock split, the price of the company's stock after the spot asuming that the total value of the tirm's stock romans the same after the split $210.00 Hackworth Hardware Cor of Tolbotics's leading competitors, Hackworth Hardware Company's market intelligence (esearch team shares Tolbotics's plans of anno 420,00 lek split, influencing the distribution policy makers Consequently, executives at flackworth deode to offer stock dividends to its sharehold $52.50 A stock dividend is anoth foeping the stock price from going too high. Hackworth currently has 1,100,000 shares of common stock $35.00 outstanding $26.25 If Tolbotics Inc. dedares a 4-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? Hackworth Hardware Company is one of Tolbotics's leading competitors. Hackworth Hardware Company's market intelligence research team shares Tolbotics's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 1,100,000 shares of common stock outstanding, If the firm pays a 5% stock dividend, how many shares will the firm issue to its existing shareholders? O 55,000 shares 57,750 shares 46,750 shares 38,500 shares