Health Systems Incorporated is considering a $15$ percent stock dividend. The capital accounts are as follows: d$.$ What is the investor's total investment worth before and after the stock dividend if the $\frac{P}{E}$ ratio remains constant?

Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.

e$.$ Assume Mr$.$ Heart, the president of Health Systems, wishes to benefit stockholders by keeping the cash dividend at a previous level

of $$1\mathrm{.}10$ in spite of the fact that the stockholders now have $15$ percent more shares. Because the cash dividend is not reduced, the

stock price is assumed to remain at $$24.$

What is an investor's total investment worth after the stock dividend if he$/$she had $100$ shares before the stock dividend?

Total investment

f$.$ Under the scenario described in part $e,$ is the investor better off?

Yes

No

g$.$ As a final question, what is the dividend yield on this stock under the scenario described in part $e?$

Note: Input your answer as a percent rounded to $2$ decimal places.

Dividend yield

$*$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 $$24$ per share. The company had total earnings of $$6,000,000$ with $4,000,000$ shares outstanding

and earnings per share were $$1\mathrm{.}50.$ The firm has a $\frac{P}{E}$ 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.

Note: 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.$)$

Note: Do not round intermediate calculations and round your answers to $2$ decimal places.

c$.$ How many shares would an investor have if he or she originally had $100?$

Note: Do not round intermediate calculations and round your answer to the nearest whole share.