On May 1, 2014, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 200,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek 's common stock was $20 per share on May 1, 2014. As a result of this stock dividend, Ziek's total stockholders' equity

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Stock dividends redistribute a portion of the company's retained earnings to its common stock equity but do not affect the total stockholders' equity. The value is moved from retained earnings to common stock and additional paid-in capital, keeping the total equity the same.