On October 31, the stockholdersâ€™ equity section of Pele Companyâ€™s balance sheet consists of common stock $648,000 and retained earnings $400,000.
Pele is considering the following two courses of action:
||Declaring a 5% stock dividend on the 81,000 $8 par value shares outstanding
||Effecting a 2-for-1 stock split that will reduce par value to $4 per share.
The current market price is $17 per share.
Prepare a tabular summary of the effects of the alternative actions on the companyâ€™s stockholdersâ€™ equity and outstanding shares.