Bill currently owns 500 shares of Taliant Inc. valued at $12 each and Taliant has just declared a 5% stock dividend. Prior to the stock dividend there were 10,000 shares outstanding. How has the value of Bills investment changed and what is the stock price after the stock dividend?

Value has not changed; new stock price $12.60

Value has gone up; new stock price $12.60

Value has gone down; new stock price $11.43

Value has not changed; new stock price $11.43