Use the following to answer questions 52-54:

On January 1, Carita's Dancing Divas had total shareholders' equity as shown below when their shares were selling at $25 per share:

Common shares (125,000 shares)	$2,500,000
Retained earnings	4,000,000
Total shareholders' equity	$6,500,000

52.	Assume the company declared and issued a 50% stock dividend. The effect of this dividend would
	A)	increase common shares by $1,250,000 and shares issued and outstanding by 62,500.
	B)	increase common shares by $1,250,000 with no change in the number of issued and outstanding shares.
	C)	leave total shareholders' equity unchanged but increase the number of shares issued and outstanding to 187,500.
	D)	reduce retained earnings by $2,000,000 and double the number of shares issued and outstanding.

53.	Assume the company declared and issued a 10% stock dividend and that the market price remained constant. The effect of this dividend would
	A)	increase common shares by $312,500.
	B)	increase common shares by $250,000.
	C)	decrease retained earnings by $250,000.
	D)	increase common shares by $400,000.

54.	If the company declared a 15% stock dividend, the number of issued and outstanding shares would
	A)	remain unchanged.
	B)	increase by 18,750 shares.
	C)	decrease by 18,750 shares.
	D)	total 143,700 shares.