please explain the math behind this because im just not sure

PART I. Multiple-choice Problems (3 points each) 1. On May 1, 2022, Zick Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 200,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek's common stock was $25 per share on May 1, 2022. As a result of this stock dividend, Ziek's total stockholders' equity a. increased by $500,000 b. decreased by $500,000. c. decreased by $25,000. d. did not change