The following transactions occurred during the year for the M\&Co Inc.: 1. Generated net income of $2.5 million. 2. Sold common stock having a par value of $1 for $22 per share. 3. Paid a cash dividend of $2 per share to its preferred shareholders. 5. Repurchased 10,000 shares of common stock at $18 per share. 6. Declared a 2 -for-1 stock split on its common stock. REOUIRED: 1) Identify whether the above transactions increased, decreased, or had no effect on total shareholders' equity. 2) Explain how is the capital market likely to react to the following and why: a) 10% stock dividend. b) Repurchase of 10,000 shares of common stock. c) 2 -for-1 stock split