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Stock split versus stock dividend Firm Mammoth Corporation is considering a 3-for-2 stock spilit it curently has the stockholders equity posiltion shown The curent stock price is $120 per share. The most necent periods eamings avalable for common stock is included in retained earmings Preferred stock Common stock (110,000 shares at S3 par) Paid-in capital in excess of par Retained earnings 1,000,000 30.000 ,700,000 10000,000 13,030,000 Total stockholders equity a. What eflect on Mammoth's equilty account would result from the sfock pli b. What change in stock price would you expect to resuft from the stock split? e what is the maximum cash dividend per share that the firm could pay on common stock before and after the stock spm?Assume that legal capital includes al paid-in capital) d. Contrast your answers to parts a through c with the dun stances sum undng50% sto die d The balance in the total stockholders equiy account ater the stock dividend is sRound to the nearest dollae The new market price per share aher the dridend is sRound to the nearest dollar) The maximum cash dividend the fem could pay betore the stock dividend is ll per share (Round to the nearest cent) maximum cash dividend the Sim could pay aftfer the stock dhvidend is per share Round to the nesrest cent ) e. Which of the following statements about stock splits is false? (Select the best answer below)

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