Pharoah Company has had 4 years of record earnings. Due to this success, the market price of its 410,000 shares of $2 par value commonstock has increased from $15 per share to $55. During this period, paid-in capital remained the same at $2,460,000. Retained earnings increased from $3,690,000 to $24,600,000. CEO Don Ames is consideringeither (1) a 15\% stock dividend or (2) a 2 for-1 stocksplit. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) parvalue per share. (b) Original Balances Paidin capital Retained earnings Totatstockholders' equity 5hares outstandine? (c) After Dividend \( 5 \longdiv { 4 9 2 0 0 0 0 } \) 2.4600000 21217500 After Split 21217500 5 2613700 1120000 1. Stockoluldend nur value per share: 2. 2tat-1 stock will par volut perstare s