Murphy's, Incorporated, has 32,250 shares of stock outstanding with a par value of $1 per share. The market value is $11 per share. The balance sheet shows $88,450 in the capital in excess of par account, $32,250 in the common stock account, and $153,950 in the retained earnings account. The firm just announced a stock dividend of 12 percent. What will the market price per share be after the dividend?

Murphy's, Incorporated, has 32,250 shares of stock outstanding with a par value of $1 per share. The market value is $11 per share. The balance sheet shows $88,450 in the capital in excess of par account, $32,250 in the common stock account, and $153,950 in the retained earnings account. The firm just announced a stock dividend of 12 percent. What will the market price per share be after the dividend?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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