Brooks Brothers has done very well the past year and its stock price is now trading over $100 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required: 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.)

.......	Before	After 100% stock Dividend	After 2 for 1 stock split
Common stock, $1 par value	$10,000
Additional paid in capital	$250,000
total paid in capital	$260,000	0	0
retained earnings	$150,000
Total stockholder's equity	$410,000	0	0
Shares outstanding	$10,000
Par value per share	$1.00
Share price	$102

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.

True or false?