B future planned uses of retained earnings c impact

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b. future planned uses of retained earnings. c. impact of inflation on replacement costs. d. future planned uses of cash. 158. CSO: 2B3e LOS: 2B3i Underhall Inc.’s common stock is currently selling for $108 per share. Underhall is planning a new stock issue in the near future and would like to stimulate interest in the company. The Board, however, does not want to distribute capital at this time. Therefore, Underhall is considering whether to offer a 2-for-1 common stock split or a 100% stock dividend on its common stock. The best reason for opting for the stock split is that a. it will not decrease shareholders’ equity. b. it will not impair the company’s ability to pay dividends in the future. c. the impact on earnings per share will not be as great. d. the par value per share will remain unchanged.
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