Accounting Question on Components of Stockholders Equity?

Question:

On October 31, the stockholders’ equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $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.

Instructions
Prepare a tabular summary of the effects of the alternative actions on the components of stockholders’ equity, outstanding shares, and book value per share. Use the following column headings: Before Action, After Stock Dividend, and After Stock Split.

I have no clue.

Answer:
before:
common $600,000
Outstanding shares: 60,000 shares
book value per share = $10
r.e. = $900,000

Stock dividend:
Current price = $14.00 share.
5% dividend = $0.70 per share
$0.70 per share * 60,000 shares = $42,000
so.

After stock dividend:
common $642,000
shares out =64,200 shares
book value= $10
r.e. = $900,000 - $42,000 = $858,000

Split:
common $600,000
shares out =120,000
book value = $5 per share
R.e. = $900,000

Accounting Question on Components of Stockholders Equity?

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