Eco Corporation is a public company traded on a major exchange. Eco's common shares are currently trading at $15 per share. The board of directors is debating whether to issue a 50% stock dividend or a three-for-two stock split (i.e., a shareholder who holds two would receive a third share). The board is wondering how shareholders' equity would be affected, and whether the value of the typical shareholder's investment will change. Details of Eco's equity section of the balance sheet is as follows: $ Common shares, no par, 1,000,000 shares issued and outstanding Retained earnings Total shareholders' equity 5,000,000 150,000,000 $ 155,000,000 Required Requirement a. At what price would you expect the shares to trade after either transaction? Explain with calculations. The stock dividend or stock split would the number of shares by %. Consequently, the price per share after a stock dividend or stock split would be the price per share before a stock dividend or stock split. Now, determine the formula to compute the price per share after either transaction and then enter the amounts and compute the price per share. (Abbreviation: No.-Number) = Price per share = Requirement b. Show what the equity section of the balance sheet for Eco would look like after the stock dividend or stock split. Complete the equity section of the balance sheet after the stock dividend. (Leave unused cells blank.) Shareholders' equity: Total shareholders' equity Now, complete the equity section of the balance sheet after the stock split. (Leave unused cells blank.) Shareholders' equity: Total shareholders' equity Requirement c. Assume that an investor has 12,000 common shares before the stock dividend or stock split. What would be the value of the investor's holdings before and after the stock dividend or stock split? Value of investment in Eco Before the stock dividend or stock split After the stock dividend or stock split Requirement d. What is your recommendation to the board of directors? Either stock dividend or a stock split would result in to the balance sheet. In both cases, total equity in the balance sheet V For Eco, in the case of a stock dividend, there would be a V resulting in V for shareholders if the company issues a stock dividend, so a V is the preferred option if one or the other option must be chosen. There does not seem to be a compelling reason to increase the number of shares or to decrease the stock price, so I However, there are recommend either antion