Health Systems Inc. is considering a 10 percent stock dividend. The capital accounts are as follows:

Common stock (3,000,000 shares at $10 par) $ 30,000,000

Capital in excess of par* 15,000,000

Retained earnings 45,000,000

Net worth $90,000,000

*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 companys stock is selling for $36 per share. The company had total earnings of $9,000,000 with 3,000,000 shares outstanding and earnings per share were $3.00. The firm has a P/E ratio of 12.

a. 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 answers in dollars, not millions (e.g. $1,230,000).)

	Capital Accounts
Commo 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.)

EPS	?
Stock Price	?

c. How many shares would an investor have if he or she originally had 100? (Do not round intermediate calculations and round your answer to the nearest whole share.)