$2.$ A company whose stock is selling for $$60$ has the following balance sheet:

Assets $$30,000,000$Liabilities$$14,000,000$

Preferred stock$1,000,000$

Common stock $(12$ par;

$100,000$ shares outstanding$)1,200,000$

Paid$-$in Capital $1,800,000$

Retained earnings$12,000,000$

a$)$ Construct a new balance sheet showing the effects of a $3-$for$-1$ stock split. What is the new price of the stock?

b$)$ Construct a new balance sheet showing the effects of a $10$ percent stock dividend. What will be the approximate new price of the stock?