7. 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: Happy Monkey Manufacturing currently has 15,000 shares of common stock outstanding. Its management belleves that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation. Stoce Certificate or $ $12 0 If Happy Monkey Manufacturing declares a 3-for-1 stock split, the price of the company's stock after the spilt, assuming that the total value of the firm's stock remains the same after the split will be If Happy Monkey Manufacturing declares a 3-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 Fuzzy Muffin Manufacturing Company is one of Happy Monkey's leading competitors. Fuzzy Muffin Manufacturing Company's market intelligence research team shares Happy Monkey's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Fuzzy Muffin decide to offer stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. Fuzzy Muffin currently has 1,900,000 shares of common stock outstanding If the firm pays a 3% stock dividend, how many shares will the firm issue to its existing shareholders? 0 45,600 shares O 54,150 shares O 57,000 shares 42,750 shares