Use the following information to answer questions 16-22 and 16-23:

Your firm declares a 10% stock dividend.Before the declaration:

Common stock (200,000 shares, $1 par)200,000

Capital in Excess of Par800,000

Retained Earnings$2,000,000

Total Equity$3,000,000

Market price of the stock is $20.00

16-22.Calculate the Capital in Excess of Par after the stock dividend is paid

a.$1,180,000

b.$1,200,000

c.$400,000

d.$1,000,000

16-23.Calculate the Retained Earnings after the stock dividend is paid

a.$600,000

b.$1,820,000

c.$1,600,000

d.$1,180,000

16-24.A commonly accepted reason why a firm might do a stock split would be to:

a.give stockholders extra income

b.increase the price per share of the firm's stock

c.bring the firm's stock into a more affordable trading range

d.increase the number of shares outstanding

Use the following information to answer questions 16-25 and 16-26:

A firm declares a 5-1 stock split.Before the stock split:

Common stock (100,000 shares, $1 par)100,000

Capital in Excess of Par500,000

Retained Earnings$2,000,000

Total Equity$2,600,000

16-25.Calculate Capital in Excess of Par:

a.$1,300,000

b.$500,000

c.$900,000

d.$1,000,000

16-26.Calculate Retained Earnings:

a.$1,600,000

b.$2,400,000

c.$1,500,000

d.$2,000,000