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Required 1 Required 2 Required information (The following information applies to the questions displayed below.) Sammy's Sportshops has been very profitable in recent years and
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Required information (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. 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 "Por volue per share" to 2 decim places.) Before After 100% Stock Dividend After 2-for-1 Stock Split Common stock, 51 par value Additional paid in capital Total poid-in capital Retained earnings Total stockholders equity Shares outstanding Par value per share Share price $1,000 52.000 53,000 23,150 $ 76.150 1.000 $ 1.00 $ 116 Required information (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 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 Required 2
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