A company's stock currently trades at P15 per share. The company just declared a 20% stock dividend. What should be the stock price after the stock dividend took place? O P15.00 O P9.25 O P12.50 O P18.50

A company's stock currently trades at P15 per share. The company just declared a 20% stock dividend. What should be the stock price after the stock dividend took place? O P15.00 O P9.25 O P12.50 O P18.50

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...

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Question

A company's stock currently trades at P15 per share. The company
just declared a 20% stock dividend. What should be the stock
price after the stock dividend took place?
O P15.00
O P9.25
O P12.50
O P18.50

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