Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share.

The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split.

Required:

1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price
2. State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false.

Complete the following table comparing the effects of a 100\% stock divic equity accounts, shares outstanding, par value, and share price. (Round State whether the statement "The primary reason companies declare a large stock dlvidend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractlve to a larger number of potential investors." is true or false