On October 31, the stockholders’ equity section of Carla Vista Co. ’s balance sheet consists of common stock $352,000 and retained earnings $398,000. Carla Vista is considering the following two courses of action: (1) Declaring a 6% stock dividend on the 88,000 $4 par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $2 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
