CASE 4 (25 points) The owners' equity accounts for Valery Corporation are shown here: Common stock (3 par value) 900,000 Capital surplus 1,200,000 Retained earnings 2,600,000 Total owners' equity 4,700,000 Instructions: 1. If the company's stock currently sells for 58 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. (10 points) 2. Assume that instead of a stock dividend, the company declares a three-for-one stock split. How the equity accounts will change? How many shares are outstanding now? What is the new par value per share? (5 points) 3. Explain the similarities and differences between the following two couples of terms: Cash Dividend vs. Stock Repurchase; Stock Dividend vs. Stock Split. (10 points)