tock Dividends The owners equity accounts for Octagon International are shown here:

Common stock ($1 par value) $ 25000

Capital surplus 135000

Retained earnings 487600

Total owners equity $647600

a. If the companys stock currently sells for $39 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

b. If the company declared a 25 percent stock dividend, how would the accounts change?

c. show how the equity accounts will change if the company declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share?

d. The company declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share?