Certificate of Stock 4. Stock dividends and stock splits Aa Aa Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: $12 Happy Monkey Manufacturing currently has 15,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. O If Happy Monkey Manufacturing declares a 4-for-1 stock split, what will be the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split? Scorecard Athletics Corp. is one of Happy Monkey's leading competitors. Scorecard's market intelligence research team shares Happy Monkey's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Scorecard decide to offer stock dividends to its shareholders. If the firm pays a 4% stock dividend, what will be the total number of shares outstanding after the stock dividend? 2,152,800 shares 2,392,000 shares 2,033,200 shares 2,750,800 shares Scorecard currently has 2,300,000 shares of common stock outstanding