Gordon Manufactures has the following equity accounts in balance sheet Details Common stock ($1 par) Capital Surplus Retained Earnings Summit Inc. $15,000,000 $30,000,000 $150,000,000 The management of Gordon Manufactures is concerned with the relatively high price of its common stock, currently selling for $30 a share. It is also concerned with the relatively large entry that Gordon shows for retained earnings. Management would prefer to low the price to a more reasonable trading range while capitalizing a portion of retained earnings. Therefore, it declares a 20% stock dividend. Required: a) What impact would the stock dividend have on Gordon Manufactures balance sheet? b) Calculate the EPS after the stock dividend is paid. Net income for the year is $45 million c) What price would you expect to pay if you bought the stock prior to ex dividend date? On or after the dividend date