In a recent presentation, Larry Huggins made two statements about dividends:

Statement $1$: "One practical concern with a stock split is that it will reduce the company's price$-$to$-$earnings ratio."

Statement $2$: "A stock dividend will increase the share price, all other things being equal."

Are Huggins' two statements about the effect of the stock split and stock dividend correct?

Question $9$Select one:

a$.$

Yes for Statement $1$ and No for Statement $2.$

b$.$

No for Statement $1$ and Yes for Statement $2.$

c$.$

Yes for both statements.

d$.$

No for both statements.

e$.$

Yes for Statement $1$ and Sometimes for Statement $2.$