On October 1, 1997, Valentine Corporation's stockholders' equity is as follows:

On October 1, Valentine declares and distributes a \(10 \%\) stock dividend when the market value of the stock is \(\$ 15\) per share.
\section*{Instructions}

(a) Compute the book value per share (1) before the stock dividend and (2) after the stock dividend. (Round to two decimals.)

(b) Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed.

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Common stock $10 par value $200,000 Paid-in capital in excess of par value 25,000 Retained earnings 175,000 Total stockholders' equity $400,000