On February 23, 2013 XYZ inc. issued 2 million shares as stock dividend when the market price per share was $30. Prior to the issuance of the dividend XYZ had 3 million common shares outstanding with a $2 par value. Which of the following describes the effect of the stock dividend? OOOO Common stock will increase by $4 million and retained earnings will decrease by $4 million. Common stock will increase by $4 million, additional paid in capital will increase by $56 million and retained earnings will decrease by $60 million. Retained earnings will increase by $60 million and Contributed capital will increase by $60 million. Common stock will increase by $56 million, additional paid in capital will increase by $4 million and retained earnings will decrease by $60 million. Retained earnings will increase by $4 million and Contributed capital will decrease by $4 million