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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

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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 10% 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 a. Show the effect on the equity accounts and per-share data of a 10% stock dividend b. Show the effect on the equity accounts and per-share data of a 5-for-4 stock split. c. Which option will accomplish Wicker's goal of reducing the current stock price while maintaining a stable level of retained eamings? d. What legal constraints might encourage the firm to choose a stock split over a stock dividend a. Show the effect on the equity accounts and per-share data of a 10% stock dividend The number of shares of common stock after the dividend is shares. (Round to the nearest whole number.) Data Table - X Preferred Stock Common Stock (100,000 shares at $1 par) Paid-in capital in excess of par Retained Earnings Total Stockholders' equity 0 100.000 900,000 560.000 $1,560,000 Price per share Earnings per share Dividend per share $26 53.30 5121 Enter your answer in the answer box and then click Check Answer Print Done 14 parts remaining

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