CHAPTER 14 Dividends and Dividend Policy LO 3 5. Stock Splits For the company in Problem 4, show how the equity accounts will change if: a. The company declares a two-for-one stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a one-for-five reverse stock split. How many shares are outg now? What is the new par value per share? LC LO 3 4. Stock Dividends The owners' equity accounts for Masterson International are shown here: Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity $ 45,000 157,000 603,000 $805,000 If the company's stock currently sells for $42 per share and a 10 percent stock dividend is declared, how many new shacos will be distributed? Show how the equity accounts would changes If the company declared a 25 percent stock dividend, how would the accounts change? b. LO