Question 4 (25 marks) The following table shows the common equity accounts of Smart Car Inc. Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity $ 245,000 618,000 2,758,300 3,621,300 (8 marks) (a) If the company declares a 10 percent stock dividend when the market value of its stock is $51 per share, how will each of the above four accounts change after the share dividend distribution? Show your calculations. (8 marks) (b) If, instead, the company decides to have a four-for-one stock split, and subsequently pays $0.65 dividend per share on the new (postsplit) shares, it is known that the total dividends to be paid are 10% higher than last year's dividends. What was last year's dividend per share? (5 marks) (c) How is it possible that dividends are so important, but at the same time, dividend policy is irrelevant? Explain. (d) (4 marks) How will a company's share price change if the company announces (i) a stock repurchase program, (ii) temporary suspension of dividend payment? Explain