Seinway Corp just declared a 10% stock dividend. Before the dividend the stock sold for $34 per share and the equity section of the firm’s balance sheet was as follows:
Common stock (10,000,000 shares, $.50 par) ..........$ 5,000,000
Paid in excess .....................56,000,000
Retained earnings ....................87,500,000
Total .........................$148,500,000
Restate the equity accounts and estimate the stock’s price after the dividend.