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Kosco CD Company has had 4 years of record earnings. Due to this success, the market price of its 386, 700 shares of $3 par
Kosco CD Company has had 4 years of record earnings. Due to this success, the market price of its 386, 700 shares of $3 par value common stock has increased from $14 per share to $52. During this period, paid-in capital remained the same at $3, 400, 300. Retained earnings increased from $2, 610, 225 to $17, 401, 500. CEO Al Dryer is considering either (1) a 13% stock dividend or (2) a 2-for-l stock split. He asks you to show the before-and-after effects of each option on retained earnings and total stockholders' equity
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