7. Stock dividend: Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $27 per share. Preferred stock Common stock (11,000 shares at $2 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $110,000 22.000 275,000 90.000 $497,000 a. Show the effects on Columbia of a 15% stock dividend. b. In light of part a, discuss the effects of stock dividend on stockholders' equity. a. The preferred stock of Columbia after a 15% stock dividend is $ (Round to the nearest dollar.) The common stock of Columbia after a 15% stock dividend is S (Round to the nearest dollar.) The paid-in-capital in excess of par of Columbia after a 15% stock dividend is $ (Round to the nearest dollar.) The retained earnings of Columbia after a 15% stock dividend is $ (Round to the nearest dollar.) The total stockholder's equity of Columbia after a 15% stock dividend is $ (Round to the nearest dollar.) b. Which of the following statements about the effects of stock dividend on stockholders' equity is false? (Select the best answer below.) O A. A stock dividend redistributes retained earnings into common stock and paid-in capital accounts. OB. A stock dividend does not cause a decrease in the overall stockholders' equity account. OC. A stock dividend causes overall stockholders' equity account to decrease. OD. A stock dividend increases paid-in capital