Crane Company has had 4 years of record earnings. Due to this success, the market price of its 450,000 shares of $2 par value common stock has increased from $12 per share to $55. During this period, paid-in capital remained the same at $2,700,000. Retained earnings increased from $2,025,000 to $13,500,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) par value per share. (a) 1. Stock dividend - retained earnings 371250000 |2. 2-for-1 stock split - retained carnings $ (b) Crane Company After Split Original Balance After Dividend 24 2$ Paid-in capital 2700000 2700000 Retained earnings 13500000 13500000 $ Total stockholder's equity 16200000 16200000 Shares outstanding 450000