Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend, The capital accounts for the firm are as follows: Common stock (2,400,000 shares at $5 par) Capital in excess of par Retained earnings Not worth $12,000,000 5,000,000 23,000,000 $40,000,000 "The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price - Par value) The company's stock is selling for $20 per share. The company had total earnings of $4,800,000 during the year. With 2.400,000 shares outstanding, earnings per share were $2.00. The firm has a P/E ratio of 10. a. What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts (Do not round intermediate calculations. Input your answers in dollars, not millions (e.g. $1,230,000).) Common stock Capital in excess of por Retained earnings Not worth 0 Proy 7 of 10 Next >