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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
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 "Par value per share" to 2 decimal places.) After 100% Stock Dividend After 2-for-1 Before Stock Split Common stock, $1 par value S 1,000 Additional paid-in capital 41,000 Total paid-in capital 42,000 0 Retained earnings 22,050 0$ $ 64,050 Total stockholders' equity 0 1,000 Shares outstanding S Par value per share 1.00 Share price 94 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 False True
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