Problem 3: Stock Dividend: Jan Brady, Chief accountant of Mulberry Silk Products is trying to work out the feasibility of a 20 percent stock dividend. The equity section of the balance sheet follows: Common stock (2 million shares $1 par) 2000 Capital in excess of par 8000 Retained earnings 10,000 Total common equity 20,000 The current market price of the companys stock is $31 per share. Is it possible to pay 20 percent stock dividend? Is it possible to pay a 10 percent stock dividend? Explain. Stock Dividend: Use the same data given in problem 3. After payment of a 10 percent stock dividend, what will be the expected market price of the stock? Also, show how the equity section of the balance sheet will change.