Health Systems Incorporated is considering a $15$ percent stock dividend. The capital accounts are as follows:

Common stock $(5,000,000$ shares at $$10$ par$)$$ $50,000,000$Capital in excess of par$*35,000,000$Retained earnings$55,000,000$Net worth$ $140,000,000$

$*$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$$s stock is selling for $$48$ per share. The company had total earnings of $$12,000,000$ with $5,000,000$ shares outstanding and earnings per share were $$2\mathrm{.}40.$ The firm has a P$/$E ratio of $20.$ Under the scenario described in part e$,$ is the investor better off