Vegas 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:

Common stock $(2,500,000$ shares$)$ $$25,000,000$

Retained earnings $20,000,000$

Net worth $$45,000,000$

The company$$s stock is selling for $$30$ per share, and it earned $$7,500,000$ during the year with $2,500,000$ shares outstanding, indicating a P$/$E ratio of $10.$

a$.$ Restate the capital accounts at year end after the $10\%$ stock dividend.

Common stock $

Retained earnings

Net worth

b$.$ Restate the EPS and share price. $($Assume the P$/$E ratio remains constant.$)($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

EPS $

Share price $

c$.$ How many shares would an investor end up with if they originally had $120$ shares?

Number of shares

shares

d$.$ If an investor originally had $120$ shares, what is the investor$$s total investment worth before and after the stock dividend if the P$/$E ratio remains constant? $($Do not round intermediate calculations.$)$

Total

investment

Before stock dividend $

After stock dividend $

e$.$ This part of the question is not part of your Connect assignment.