Health Systems Incorporated is considering a 20 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 selling for $35 per share. The company had total earnings of $7,500,000 with 3,000,000 shares outstanding and earnings per share were $2.50. The firm has a P/E ratio of 14 . a. What adjustments would have to be made to the capital accounts for a 20 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. How many shares would an investor have if he or she originally had 90 ? Note: Do not round intermediate calculations and round your answer to the nearest whole share