Citigroup with the equity accounts shown below has declared a 15% stock dividend when the market value of its equity is 30 per share.

Suppose Citigroup instead decides on a five-for-two stock split. What effect does this have on the equity accounts?

Ordinary Shares (1 per share) 500,000 Capital Surplus 2,250,000 Retained earnings 3,500,000 Total owners' equity 6,250,000