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Kosco CD Company has had 4 years of record earnings. Due to this success, the market price of its 400,000 shares of $2 par value

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Kosco CD Company has had 4 years of record earnings. Due to this success, the market price of its 400,000 shares of $2 par value common stock has increased from $6 per share to $50. During this period, paid-in capital remained the same at $2,400,000. Retained earnings increased from $1,800,000 to $12,000,000. CEO Al Dryer is considering either (1) a 15% 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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