Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Happy Monkey Manufacturing currently has 25,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation. If Happy Monkey Manufacturing declares a 3-for-1 stock split, the price of the companys stock after the split, assuming that the total value of the firms stock remains the same after the split, will be . Hackworth Hardware Company is one of Happy Monkeys leading competitors. Hackworth Hardware Companys market intelligence research team shares Happy Monkeys plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 1,900,000 shares of common stock outstanding. If the firm pays a 5% stock dividend, how many shares will the firm issue to its existing shareholders? 99,750 shares 76,000 shares 104,500 shares 95,000 shares