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 toom high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. Certificate of Stock $12 If Tolbotics Inc. declares 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? $210.00 Hackworth Hardware Con e of Tolbotics's leading competitors. Hackworth Hardware Company's market intelligence research team shares Tolbotics's plans of annou $420.00 ck split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its sharehold $52.50 A stock dividend is anoth outstanding. eeping the stock price from going too high. Hackworth currently has 1,100,000 shares of common stock $35.00 $26.25