Wicker Home Health$$ Care, Inc., is exploring ways to expand the number of shares outstanding to reduce the market price per share to a level that the firm considers more appealing to investors

options under consideration are a $20\%$ stock dividend and a $5-$for$-4$ stock split. At present, the firm's equity account and other per$-$share information are given as follows:

a$.$ Show the effect on the equity accounts and per$-$share data of a $20\%$ stock dividend.

The number of shares of common stock after the dividend is shares. $($Round to the nearest whole number.$)$

The balance in the common stock account after the dividend is $$\_\_($Round to the nearest dollar.$)$

The balance in the paid$-$in capital in excess of par account after the dividend is $$.($Round to the nearest dollar.$)$

The balance in the retained earnings account after the dividend is $$,($Round to the nearest dollar.$)$

The price per share of common stock after the dividend is $$,($Round to the nearest cent.$)$

The earnings per share $($EPS$)$ after the dividend is $$.($Round to the nearest cent.$)$

b$.$ Show the effect on the equity accounts and per$-$share data of a $5-$for$-4$ stock split.

The number of shares of common stock after the split is shares. $($Round to the nearest whole number.$)$

The balance in the common stock account after the split is $$,($Round to the nearest dollar.$)$

The balance in the paid$-$in capital in excess of par account after the split is $$.($Round to the nearest dollar.$)$

The balance in the retained earnings account after the split is $$,($Round to the nearest dollar.$)$

The price per share of common stock after the split is $$.($Round to the nearest cent.$)$

The earnings per share $($EPS$)$ after the split is $$,($Round to the nearest cent.$)$

c$.$ Which option will accomplish Wicker's goal of reducing the current stock price while maintaining a stable level of retained earnings? $($Select the best answer below.$)$

A$.$ The option in part $b,$ the stock split, will accomplish the goal of reducing the stock price while maintaining a stable level of retained earnings.

B$.$ The option in part a$,$ the stock dividend, will accomplish the goal of reducing the stock price while maintaining a stable level of retained earnings.

d$.$ What legal constraints might encourage the firm to choose a stock split over a stock dividend? $($Select the best answer below.$)$

A$.$ There would be no legal constraint to encourage the firm to choose a stock split over a stock dividend.

B$.$ The firm may be restricted in the amount of cash it holds.

C$.$ The firm may be restricted in the amount of retained earnings available for dividend payments, whether cash or stock dividends.

D$.$ The firm may be restricted in the number of shares it could issue.