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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
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, shores outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) Before After 100% Stock Dividend After 2-fort Stock Split GOK int encies Common stock $1 par value Additional paid-in capital Total pald-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price 5 1,000 44,000 45,000 22,350 567,350 1.000 $ 1.00 $ 100 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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