5. stock dividends and stock splits companies sometimes consider stock splits to bring down the price so that the stock attracts more purchase

CHE S. 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: Mainway Toy Company currently has 20,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 2 for 1 as described in the animation. 2 for 1 Stock split announcement $6 IF Mainway Toy Company dedares a 2-fot1 stock split, the price of the company's stock after the split, assuming that the total value of the fier's stock remains the same after the split will be Fuzzy Multin Manufacturing Company is one of Mairway's leading competitors. Furry Muffin Manufacturing Company's market intelligence research team shares Mainway's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Fuzzy Muffin decide 10 cffer stock dividends to its shareholders A stock dividend is another way of keeping the stock price from going too high. Pozry Muffin currently has 2,300,000 shares of common stock outstanding 1 the firm pays a 74 stock dividend, how many shares will the tem issue to lits existing shareholders? 152.950 shares 136,850 shares 161.000 shares 128,800 shares