Question 28 View Policies Current Attempt in Progress On January 1, The Blue Azul Diving Co. had total shareholders' equity as shown below when their shares were selling at $25 per share: Common shares (125,000 $2,500,000 shares) Retained earnings 4,000,000 Total shareholders' $6,500,000 equity. Assume the company declared and issued a 50% stock dividend. The effect of this dividend would Increase common shares by $1.250,000 and shares issued and outstanding by 62,500. increase common shares by $1,250,000 with no change in the number of issued and outstanding shares. leave total shareholders' equity unchanged but increase the number of shares issued and outstanding to 187,500. reduce retained earnings by $2,000,000 and double the number of shares issued and outstanding