5. Stock dividends and stock splits Companies sometimes consider stock spits to bring down the price so that the stock attracts more purchases. Consider the following case: Tolbotics Inc. currently has 25,000 shares of common stock outstanding. Its management believes that its current stock price of $100 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 2 for 1 Stock split announcement they $6 $6 If Tolbotics Inc, declares a 2 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 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, Hachoworth currently has 1,900,000 shares of common stock outstanding If the firm pays a 6% stock dividend, how many shares will the firm issue to its existing shareholders 114,000 shares O 96,900 shares 103,300 shares 125,400 shares