(Solution) - In early 2013 the 20 par common stock of Driftwood -(2025 Original AI-Free Solution)

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In early 2013, the $20 par common stock of Driftwood Construction Company was selling in the range of $100 to $130 per share, with 146,000 shares outstanding.
On May 1, 2013, Driftwood's board of directors decided that, effective May 10, 2013, Driftwood stock would be split 2 for 1. Before making the public announcement, the board had to decide whether to do the split as a "true" stock split and reduce the par value per share to $10 or to accomplish the split through a 100% stock dividend.
Why does Driftwood's board of directors want to double the number of shares outstanding? What factors should Driftwood's board consider in deciding between a true 2-for-1 split and a 100% stock dividend?