Detailed answer needed

4-15 Stock split versus stock dividend Distilled Water Corporation is a company special izing in water purification and distributing bottled water to retailers. The corpora- tion is considering a 3-for-2 stock split. The current stock price is $25 per share. stockholders' equity account is as follows: Preferred stock Common stock (150,000 shares at $6 par) Paid-in capital in excess of par Retained earnings S 500,000 900,000 2,850,000 760,000 5,010,000 Total stockholders' equity a. What changes will occur in the stockholders' equity account from the 3-for 2 stock split? b. What change would you expect in the stock price as a result of the stock split? c. Calculate the maximum cash dividend per share that the firm could pay on com- mon stock before and after the stock split, assuming that legal capital includes all paid-in capital. d. A stockholder owns 200 shares. Based on the maximum dividends payable (see part c), would the stockholder prefer the 3-for-2 stock split? Differentiate between stock splits and stock dividends. e