Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $125 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) Answer is complete and correct. Number of shares 4,250 b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Total value 531,250
Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $125 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) Answer is complete and correct. Number of shares 4,250 b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Total value 531,250
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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Transcribed Image Text:Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells
at $125 per share.
a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.)
Answer is complete and correct.
Number of shares
4,250
b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.)
Answer is complete but not entirely correct.
Total value
531,250
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