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5. Stock Dividends The owners' equity accounts for Octagon International are shown here: Common stock ($1 par value) $ 25000 Capital surplus 135000 Retained earnings

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5. Stock Dividends The owners' equity accounts for Octagon International are shown here: Common stock ($1 par value) $ 25000 Capital surplus 135000 Retained earnings 487600 Total owners' equity $647600 a. If the company's stock currently sells for $39 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. b. If the company declared a 25 percent stock dividend, how would the accounts change? c. show how the equity accounts will change if the company declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share? d. The company declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share

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