8. Stock dividends and stock splits Aa Aa Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases Consider the following case: Tolbotics Inc. currently has 15,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation. ertificate of s 12 If Tolbotics Inc. declares a 3-for-1 stock split, what will be the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be Hackworth Hardware Company is one of Tolbotics's leading competitors. Hackworth Hardware Company's market intelligence research team shares Tolbotics's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders If the firm pays a 7% stock dividend, how many shares will the firm issue to its existing shareholders? O 91,000 shares O 77,350 shares O 81,900 shares O 86,450 shares A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 1,300,000 shares of common stock outstanding