WE COMPANY declares a 10% stock dividend at the current market price P80/share. The following are the details of MY COMPANY stockholders section:

Preferred Stock P 500,000.00 Common Stock (100,000 shares at P50 par) 5,000,000.00 Paid-in Capital in Excess of Par 2,000,000.00 Retained Earnings 1,000,000.00 Total Stockholders Equity 8,500,000.00 WE COMPANY want to know the effect of stock dividends on its Financial Statement. The company hire you as a financial consultant to explain to the BOD the effect of this undertaking.