AP11-17B (Stock splits and stock dividends) Pegahmagabow Company has 250,000 common shares outstanding. The market price of $200 per share has made the shares unaffordable to certain investors. Because it wants to make the shares more widely available to all investors, the company is deciding whether to split its shares four-for-one or declare a 30% stock dividend. Required a. Which of the two options being considered would have the least impact on retained earnings and why? b. Prepare the journal entry if the company decides to split its shares four-for-one. c. Prepare the journal entries if the company decides to declare and issue a 30% stock dividend. d. Which option would you recommend Pegahmagabow undertake to achieve their objective of making their shares more affordable? AP11-18B (P/E, dividend payout, dividend yield and ROE) OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of Cloud's common shares was $40.93 and $38.20 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.477 and 0.415 for 2020 and 2019, respectively. OCLOUD CORPORATION Years Ended June 30, 2020, and 2019 (in thousands) Comparative Income Statement 2020 Total revenues $2.291.057 Total cost of revenues 762,391 Total operating expenses 1,175,734 Net income $1,025,659 Statement of Financial Position 2020 Total assets $7,480,562 Total liabilities 3,947,243 Common share capital 1,439,850 Total shareholders' equity $3.533,319 Weighted average number of common shares outstanding 253,879 2019 $1.824.228 574.000 881,665 $ 284,477 2019 $5,154,144 3.774,947 817.788 $1,978,656 242,926 Required a. Calculate the return on shareholders' equity for OCloud in 2020. Note that OCloud's articles of incorporation authorize only common shares. The average return for the shares listed on the Toronto Stock Exchange in a comparable period was 19.8%. What information does your calculation provide an investor? b. Calculate earnings per share and the price/earnings ratio for the years 2020 and 2019. What does your calculation indicate about OCloud's earnings? c. Calculate the dividend payout ratio and the dividend yield for 2020 and 2019. What do the results of these ratios tell us about OCloud