Market price of the stock be after the stock dividend

Question

Problem:

Holts currently has a common stock account balance of $630,000 and a retained earnings account balance of $984,000. The stock has a par value of $1 per share and a market value of $22 per share. Holts has declared a 7 percent stock dividend.

Required:

Question: What will the market price of the stock be after the stock dividend?

• 20.46
• 20.56
• 22.00
• 23.54

Note: Please show the work not just the answer.