Exercise 14-4 Your answer is partially correct. Try again On October 31, the stockholders' equity section of Heins Company consists of common stock $255,000 and retained earnings $881,000. Heins is considering the following two courses of action: (1) declaring a 4% stock dividend on the 25,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital Common stock 255000 265200 255000 In excess of par 5100 Total paid-in capital 255000 270300 255000 Retained earnings 881000 836150 881000 Total stockholders' equity 1136000 1136000 1136000 Outstanding shares 25500 26520 25500 Par value per share 10 10