Sammy€™s Sportshops has been very profitable in recent 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.

Required:
1. Complete the following chart 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.

2. What is the primary reason companies declare a large stock dividend or a stocksplit?

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After 100% Stock Dividend After 2-for-1 Stock Split Before $1,100 59,000 60,100 23850 5 Common stock, $1 par value Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price ,100 $ 130