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Health Systems inc. is considering a 15 percent stock dividend. The capital accounts are as follows: The increase in capital in excess of par as

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Health Systems inc. is considering a 15 percent stock dividend. The capital accounts are as follows: 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 setting for $24 per share. The company had total earnings of $6,000.000 with 4,000,000 shares outstanding and earnings per share were $1 50. The firm has a P/E ratio of 16. a. What adjustments would have to be made to the capital accounts for a 15 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).) 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.)

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