Bob's Golf Emporium 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 dividend versus a 2 -for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)