At the end of 20X6, Home Ltd. reported the following in shareholders equity:

Common shares, no-par value; authorized, unlimited shares; issued, 14,450,000 shares	$	18,865,000
Retained earnings		52,890,000
	$	71,755,000

At this time, the shares were trading in the range of $5 to $7 per share on public stock markets. The companys 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: Prepare the shareholders equity section for each alternative, assuming that market value is used to capitalize the stock dividend. What would the expected share price be assuming a share price of $4 for alternative 1 and a share price of $6 for alternative 2? (Round your answers to 2 decimal places.) Which alternative would shareholders prefer? Which alternative would the company prefer?