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Health Syslems Inc. ts considening a 10 percent stock dividend. The capital accounts are as tollows S 40,000,000 25,000,000 45,000,000 Common stock (4,000,000 shares at

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Health Syslems Inc. ts considening a 10 percent stock dividend. The capital accounts are as tollows S 40,000,000 25,000,000 45,000,000 Common stock (4,000,000 shares at $10 par) Capital in excess of par Retained earnings Net worth $110,000,000 The increase in captal in excess of par as a result of a stock dividend is equal to the shares created times (Market price-Par value The company's stock is selling for $16 per share. The company had total earnings of $8,000,000 with 4,000,000 a. What adjustments would have to be made to the shares outstanding and earnings per share were $2.00. The firm has a PIE ratio of 8 capital accounts for a 10 percent stock dividend? Show the new capital accounts (Do not round intermediate calculations. Input your answers in dollars, not mitlions $1,230,000).) Capital Accounts Common stock Capital in excess of par Retained earnings Net worth b. What adjustments would be made to EPS and the stock price? (Assume the P/E ratio remains constant) (Do not round intermediate calculations and round your answers to 2 decimal places.) Stock price had 07 Do not round intermediate cale ations and round your answer to the nearest whole i a . How many shares wound an investor have if he or she on nal

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