In $2-3,$ full paragraphs, explain the following:

An owner of $2,500$ shares of Simmons Company common stock receives a stock dividend of $50$ shares.

What is the effect of the stock dividend on the stockholder$$s proportionate interest $($equity$)$ in the corporation?

How does the total equity of $2,550$ shares compare with the total equity of $2,500$ shares before the stock dividend?