9. Stock Splits. Using the data from the previous problem (Q&P 8), suppose the company decides on a four-for-one stock split instead of a 15% stock dividend.

A) What effect does this have on the equity accounts? (see #8 for the equity accounts).

B) Question #8 (done in class) looks at the impact of a stock dividend on the equity accounts of a given company. Question #9 studies the impact of a stock split on the equity accounts. Compare the impact on the equity accounts. That is, does the impact differ? If yes, how? If not, why not?

C) the firms 75-cent per share cash dividend on the post-split shares (i.e. # shares after the split) represents an increase of 10 percent over last years dividend on the presplit stock. What was last years dividend per share?

Stock Dividends (LO4) The company with the common equity accounts shown here has declared a 15% stock dividend when the market value of its stock is $61 per share. What effects on the equity accounts will the distribution of the stock dividend have