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Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) [The following information applies to the questions displayed below) Sammy's Sportshops has been very

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Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) [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 stock split. Problem 10-3A Part 1 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.) Before After 100% Stock Dividend After 2.1 Gtook Split Common stock, 31 par value Additional paid in capit Total paid in capital Rataned earnings Total stockholders equity Share outstanding Par value por share Share prin $1,000 58,000 50.000 23,750 5.82.750 1,000 S 100 5 125 Required information Problem 10-3A Indicate effect of stock dividends and stock splits (L010-6) (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 Problem 10-3A Part 2 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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