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of 2 Required information [The following information applies to the questions displayed below) Sammy's Sportshops has been very profitable in recent years and has seen

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of 2 Required information [The following information applies to the questions displayed below) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. ok Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) nt Before After 100% Stock Dividend After 2-for-1 Stock Split ences 0 0 Common stock. $1 par value Additional paid-in capital Total pald-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price $ 1.100 56,000 57,100 23,550 $ 80,650 1,100 $ 1.00 $ 0 $ 0 $ 124 ! Required information (The following information applies to the questions displayed below) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. 2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors. True or False True False

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