5. Stockdividends and stock splits Companies sometimes employ stock splits to bring down the price of its shares so that the stock is more attractive to potential investors. Consider the case of Green Moose Industries: Green Moose Industries 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 a 4-for-1 stock split. If Green Moose Industries 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 before and after the split-should be per share. Blue Elk Manufacturing is one of Green Moose's leading competitors. Blue Elk's market intelligence research team has learned of Green Moose's stock split plans, and is considering paying a stock dividend to its own shareholders. As a result, executives at Blue Elk decide to offer stock dividends to its shareholders. Blue Elk Manufacturing currently has 2,750,000 shares of common stock outstanding. If Blue Elk pays a 5% stock dividend, how many total shares of common stock will be outstanding after the stock dividend? 2,887,500 shares 3,609,375 shares 2,743,125 shares 3,320,625 shares