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Problem 10-3A (Algo) Indicate effect of stock dividends and stock splits (LO10-6) Bob's Golf Emporlum has been very profitable In recent years and has seen
Problem 10-3A (Algo) Indicate effect of stock dividends and stock splits (LO10-6) Bob's Golf Emporlum 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 elther a 100% stock dividend or a 2-for-1 stock split. Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2 -for-1 stock split on the stockholders' equit) accounts, shares outstanding, par value, and share price. 2. State whether the statement "The primary reason companles 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 attractlve to a larger number of potentlal Investors." Is true or false. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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.)
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