! Required information Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) [The following information applies to the questions displayed below.) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) Before After 100% Stock Dividend After 2-for-1 Stock Split Common stock, $1 par value Additional paid in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value por share Share price $ 1.200 *45,000 46.200 22,450 $ 68,650 1.200 $ 1.00 $ 102 Required information Problem 10-3A Indicate effect of stock dividends and stock splits (L010-6) The following information applies to the questions displayed below) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 2 2. The primary reason companies declare a large stock dividend or a stock spit is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors. True or False True False