I'm confused and don't understand this very well. Can someone please explain why we do the computations to arrive at these numbers? I know that this is easy math, I just don't understand it conceptually. Therefore, I don't know when to do what computations and why. Thanks

Show computations & answers. # of dividend shares = (5), *.2) # of dividend shares = computation: 150,00 X.1) ) answer: 5, $ 10% stock dividend value (FMV = $25/share) (D, 20% stock dividend (FMV = $40/share) value $ Stockholders' Equity section of balance sheet Common Stock, $5 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 250,000 120,000 450,000 820,000 5 $ 275 $20 $ 220, $25 $ 325,000 25 $ 820,000 55,00 shares $35 $40 25 $ 90,00 $ 470,000 $ 50,UDU $ 820,000 50.000 shares $ Common stock shares outstanding 50,000 # of dividend shares = (5000x (2) 3-50,00 50,000 2-for-1 stock split # of dividend shares = computation: (50,00 X 1) answer: 50,00 $ 100% stock dividend Stockholders' Equity section of balance sheet value (FMV = $30/share) Common Stock, $5 par value, 300,000 shares authorized, 50,000 shares issued and outstanding $ 250,000 45 $ 500, www Paid-in capital in excess of par value, common stock 120,000 $ 120,00 Retained earnings 750,000 $5 $ 500,000 Total stockholders' equity $ 1,120,000 V $ 1,120,000 Common stock shares outstanding 25,000 Two, shares Par Value $ 5 $ $ 250,oo 120, www 750 uur 1,120,000 100 shares SSO