On October 31 the stockholders equity section of Omar Company consists of common

On October 31 the stockholders equity section of Omar Company consists of common stock $600000 and retained earnings $900000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60000 $10 par value shares outstanding or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.InstructionsPrepare a tabular summary of the effects of the alternative actions on the components of stockholders equity and outstanding shares. Use the following column headings: Before Action After Stock Dividend and After Stock Split.