Suppose a stock is currently trading for $30 per share. (a) If this firm issue a 20% stock dividend, what would its new share price be? (b) If this firm does a 5:4 stock split, what should its new share price be ?
Suppose a stock is currently trading for $30 per share. (a) If this firm issue a 20% stock dividend, what would its new share price be? (b) If this firm does a 5:4 stock split, what should its new share price be ?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 21MC
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Question
D3)
Suppose a stock is currently trading for $30 per share.
(a) If this firm issue a 20% stock dividend, what would its new share price be?
(b) If this firm does a 5:4 stock split, what should its new share price be ?
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