CALCULATOR PRINTER VERSION BACK Exercise 11-7 Your answer is partially correct. Try again. On October 31, the stockholders' equity section of Carla Vista Co's balance sheet consists of common stock $352,000 and retained earnings $398,000. Carla Vista is considering the following two courses of action: (1) Declaring a 6% stock dividend on the 88,000 $4 par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $2 per share. The current market price is $16 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Carla Vista Co.s Balance Sheet Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital 352000 352000 Retained earnings 98000 Total stockholders' equity $ 50000 50000 Outstanding shares 88000 176000 VIDEO SIMILAR EXERcise