Question

Check my work Required information The following information applies to the questions displayed below.) Part 1 of 2 Sammy's Sportshops has been very profitable in Secent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split points Book References Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) After 2-for-1 Stock Split After 100% Before Stock Dividend $ 1.1001 46.000 Common stock, S1 par value Additional paid in capital Total pald-in capital 47.100 22 550 Retained earings

Answer 1

1) Table

	Before action	after stock dividend	after stock split
Common Stock	1100	2200	1100
Additional paid in capital	46000	46000	46000
Total paid in Capital	47100	48200	47100
Retained earnings	22550	21450	22550
Total Stockholder's equity	69650	69650	69650
Share outstanding	1100	2200	2200
par value per share	1	1	0.50
Market price per share	104	104	52

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