DO IT! 11-3b Spears Company has had 4 years of record earnings. Due to this success, the market price of its 400,000 shares of S2 par value common stock has increased from S6 per share to $50. During this period, paid-in capital remained the same at $2,400,000. Retained earnings increased from $1,800,000 to $12,000,000, 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. Do It! 11-3b Determine Effects of Stock Dividend & Stock Split Before Action After 15% Stock Dividend After 2-for-1 Stock Split Paid-in capital (PIC) Retained earnings (RE) Total stockholders' equity Outstanding Shares Par value per share $ 2,400,000 12,000,000 $ 14,400.000 400,000 $ 2