Share ValuationThe board of Santova Ltd is exploring ways to expand the number of shares outstanding in an effort to reduce themarket price per share to a level that the firm considers more appealing to investors.The options under consideration are a 20% stock dividend and, alternatively, a 5-for-4 stock split.At the same time, the firms equity account and other per-share information are as follows:Preferred stock0Common stock ( 100,000 shares at R1 par)100000Paid-in capital in excess of par900000Retained earnings700000Total stockholders' equity1700000Share priceR30EPSR3,60DPSR1,08P/ER8,33a) Show the effects on the equity account, EPS and P/E ratio of a 20% of a stock dividend.After stock 20% dividendPreferred stockCommon stock ( )[2]Paid-in capital in excess of par[2]Retained earnings[2]Total stockholders' equity0[2]Change in price[1]Net Income[1]Change in EPS[1]