Nancy checks her margin account and notices she has an SMA balance in her account. A 10% stock dividend was declared this morning on one of the companies she had purchased on margin. She asks her RR how this will affect her SMA balance. How should the RR respond?

Dakota company experienced the following events during 2016. 1. acquired $30,000 cash from the issue of common stock. 2. paid $12,000 cash to purchase land. 3. borrowed $10,000 cash. 4. provided services for $20,000 cash. 5. paid $1,000 cash for utilities expense. 6. paid $15,000 cash for other operating expenses. 7. paid a $2,000 cash dividend to the stockholders. 8. determined that the market value of the land purchased in event 2 is now $12,700