On October 31, the stockholders' equity section of Pele Company's balance sheet consists of common stock $721,600 and retained earnings $431,800.
Pele is considering the following two courses of action:
| (1) |
|
Declaring a 6% stock dividend on the 90,200 $8 par value shares outstanding |
| (2) |
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Effecting a 2-for-1 stock split that will reduce par value to $4 per share. |
The current market price is $16 per share.
Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares.