Ace Products sells marked playing cards to blackjack dealers. Ithas not paid a dividend in many years, but is currentlycontemplating some kind of dividend. The capital accounts for thefirm are as follows: Common stock (2,400,000 shares at $5 par) $12,000,000 Capital in excess of par* 9,000,000 Retained earnings24,000,000 Net worth $ 45,000,000 *The increase in capital inexcess of par as a result of a stock dividend is equal to the newshares created times (Market price ? Par value). The company’sstock is selling for $10 per share. The company had total earningsof $2,400,000 during the year. With 2,400,000 shares outstanding,earnings per share were $1. The firm has a P/E ratio of 10. a. Whatadjustments would have to be made to the capital accounts for a 10percent stock dividend? Show the new capital accounts. (Do notround intermediate calculations. Input your answers in dollars, notmillions (e.g. $1,230,000).) b. What adjustments would be made toEPS and the stock price? (Assume the P/E ratio remains constant.)(Do not round intermediate calculations and round your answers to 2decimal places.) c. How many shares would an investor end up withif he or she originally had 100 shares? (Do not round intermediatecalculations and round your answer to the nearest whole share.) d.What is the investor's total investment worth before and after thestock dividend if the P/E ratio remains constant? (Do not roundintermediate calculations and round your answers to the nearestwhole dollar.)