8. Stock dividends and stock splits Aa Aa E Consider the following case: 3 for 1 Stock split announcement sertificate of Store stificate of Store Districate of Store Tolbotics Inc. currently has 25,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation. If Tolbotics Inc. declares a 3-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be If the firm pays a 3% stock dividend, how many shares will the firm issue to its existing shareholders? Fuzzy Muffin Manufacturing Company is one of Tolbotics's leading competitors. Fuzzy Muffin Manufacturing Company's market intelligence research team shares Tolbotics's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Fuzzy Muffin decide to offer stock dividends to its shareholders. 91,200 shares O 96,000 shares O 100,800 shares O 67,200 shares A stock dividend is another way of keeping the stock price from going too high. Fuzzy Muffin currently has 3,200,000 shares of common stock outstanding