Question $5$ of $7$

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Coronado Company has had $4$ years of net income. Due to this success, the market price of its $447,000$ shares of $$3$ par value common stock has increased from $$14$ per share to $$51.$ During this period, paid$-$in capital remained the same at $$2,310,000.$ Retained earnings increased from $$1,740,000$ to $$12,000,000.$ President $E.$ Rife is considering either a $13\%$ stock dividend or a $2-$for$-1$ stock split.

He asks you to show the before$-$and$-$after effects of each option on retained earnings.

Retained earnings after stock dividend $

Retained earnings after stock split $

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He asks you to show the before$-$and$-$after effects of each option on total stockholders' equity.

Total stockholders' equity after stock dividend $

Total stockholders' equity after stock split $

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