9. Stock dividends 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 Tasty Tuna Corporation: Tasty Tuna Corporation currently has 30,000 shares of common stock outstanding. Its management believes that its current stock price of $105 per share is too high. The company is planning to conduct a 3-for-1 stock split. If Tasty Tuna Corporation declares a 3-for-1 stock split, what will be 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. Savory Seafood Inc. is one of Tasty Tuna's leading competitors. Savory Seafood's market intelligence research team has learned of Tasty Tuna's stock split plans, and is considering paying a stock dividend to its own shareholders. As a result, executives at Savory Seafood decide to offer stock dividends to its shareholders. Savory Seafood Inc. currently has 3,300,000 shares of common stock outstanding. If Savory Seafood pays a 7% stock dividend, how many total shares of common stock will be outstanding after the stock dividend? 3,884,100 shares 3,531,000 shares 3,177,900 shares 3,001,350 shares