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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