Stock dividend versus stock split-Firm The board of Wicker Home Health Care, Inc., is exploring ways to expand the number of shares outstanding in an effort to reduce the market 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 present time, the firm's equity account and other per-share information are given as follows: c. Which option will accomplish Wicker's goal of reducing the current stock price while maintaining a stable level of retained earnings? (Select the best answer below.) A. The option in part b, the stock split, will accomplish the goal of reducing the stock price while maintaining a stable level of retained earnings. B. The option in part a, the stock dividend, will accomplish the goal of reducing the stock price while maintaining a stable level of retained earnings. d. What legal constraints might encourage the firm to choose a stock split over a stock dividend? (Select the best answer below.) A. There would be no legal constraint to encourage the firm to choose a stock split over a stock dividend. B. The firm may be restricted in the amount of retained earnings available for dividend payments, whether cash or stock dividends. C. The firm may be restricted in the amount of cash it holds. OD. The firm may be restricted in the number of shares it could issue. - Data table 0 Preferred Stock Common Stock (100,000 shares at $1 par) Paid-in capital in excess of par Retained Earnings Total Stockholders' equity 100,000 900,000 700,000 $1,700,000 Price per share Earnings per share Dividend per share $30 $3.60 $1.08