Answer:   Please find answers in the explanation column
Explanation:
Summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares.
                      Before action	After stock dividend	After stock split
Stockholder's equity	  
Paid in capital	$696000	696000+ $65,250             $696,000
                                                        =$761,250	
Retained earnings	$397000	397000-($65,250)             $397,000
                                                           =$331,750  
Total Stockholder's 
equity	                 $1,093,000        $1,093,000               $1,093,000
Outstanding shares $87,000   87000 + 4,350              87000 x 2 =  
                                                           =$91, 350                      $174,000
Calculations:
stock dividend = Number of outstanding shares x percentage of dividend 
= 87,000 x 5% =4,350
 Amount to purchase 4,350 shares= number of shares x market value per share = 4,350 x 15= n$65,250
 Number of shares after stock split of 2-for -1 = 87,000 x 2 = 174,000