Do It! Review 11-3b Carla Vista Co. has had 4 years of record earnings. Due to this success, the market price of its 500,000 shares of $4 par value common stock has increased from $14 per share to $55 During this period, paid-in capital remained the same at $6,000,000. Retained earnings increased from $4,500,000 to $30,000,000. 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. 1. Stock dividend - retained earnings 2. 2-for-1 stock split retained earnings Carla Vista Co Original Balance After Dividend dend _After Split After Split Paid-in capital Retained earnings Total stockholder's equity $ Shares outstanding 1. Stock dividend- par value per share 2. 2-for-1 stock split par value per share