At the end of 20X6, Home Ltd. reported the following in shareholders' equity: Common shares, no...

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At the end of 20X6, Home Ltd. reported the following in shareholders' equity: Common shares, no par value; authorized, unlimited shares; issued, 14,400,000 shares Retained earnings $18,800,000 52,840,000 $71,640,000 At this time, the shares were trading in the range of $4 to $6 per share on public stock markets. The company's board of directors is contemplating two alternative courses of action: 1. Declaring a 50% stock dividend, or 2. Executing a 3-for-2 stock split. Required: 1. Prepare the shareholders' equity section for each alternative, assuming that market value is used to capitalize the stock dividend. 2. What would be the expected share price in each case? 3. Which alternative would shareholders prefer? Explain. 4. Which alternative would the company prefer? Explain. At the end of 20X6, Home Ltd. reported the following in shareholders' equity: Common shares, no par value; authorized, unlimited shares; issued, 14,400,000 shares Retained earnings $18,800,000 52,840,000 $71,640,000 At this time, the shares were trading in the range of $4 to $6 per share on public stock markets. The company's board of directors is contemplating two alternative courses of action: 1. Declaring a 50% stock dividend, or 2. Executing a 3-for-2 stock split. Required: 1. Prepare the shareholders' equity section for each alternative, assuming that market value is used to capitalize the stock dividend. 2. What would be the expected share price in each case? 3. Which alternative would shareholders prefer? Explain. 4. Which alternative would the company prefer? Explain.