Health Systems Inc is considering a 10 percent stock dividend. The capital accounts are as follows: Common stock (4,000,000 shares at $10 par) Capital in excess of part Retained earnings Net worth $ 40,000,000 25,000,000 45,000,000 $110,000,000 The increase in capital 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 $45 per share. The company had total earnings of $12,000,000 with 4,000,000 shares outstanding and earnings per share were $3.00 The firm has a P/E ratio of 15. o. What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts (Do not round intermediate calculations. Input your onswers in dollars, not millions (0.g. 51,230,000).) b. What adjustments would be made to EPS and the stock price? (Assume the Ple ratio remains constant. (Do not round intermediate calculations and round your answers to 2 decimal places.) Answer is complete but not entirely correct. EPS Stock price $ $ 14 55 1455 c. How many shares would an investor have if he or she originally had 90? (Do not round intermediate calculations and round your answer to the nearest whole share.) Answer is complete but not entirely correct. Number of shares 17 d. What is the investor's total investment worth before and after the stock dividend if the P/E ratio remains constant? (Do not round intermediate calculations and round your answers to the nearest whole dollor.); Answer is not complete. Total Investment Before stock dividend 5 1.120 After stock dividend e. Assume Mr. Heart, the president of Health Systems, wishes to benefit stockholders by keeping the cash dividend at a previous level of S105 in spite of the fact that the stockholders now have 10 percent more shares. Because the cash dividend is not reduced, the stock price is assumed to remain at $45. What is an investors total investment worth after the stock dividend if he/she had 90 shares before the stock dividend? Total Investment