give solution LG $6$ P$14-16$ Stock dividend versus stock split$-$Firm The board of Wicker Home Health Care,

Inc., is exploring ways to expand the number of shares outstanding in an effort to

reduce the market price per share to a level that the firm considers more appealing

to investors. The options under consideration are a $20\%$ stock dividend and, alter$-$

natively, a $5-$for$-4$ stock split. At the present time, the firm's equity account and

other per$-$share information are as follows:

a$.$ Show the effect on the equity accounts and per$-$share data of a $20\%$ stock

dividend.

b$.$ Show the effect on the equity accounts and per$-$share data of a $5-$for$-4$

stock split.

c$.$ Which option will accomplish Wicker's goal of reducing the current stock price

while maintaining a stable level of retained earnings?

d$.$ What legal constraints might encourage the firm to choose a stock split over a

stock dividend?