Stock splits versus stock dividends. Assume that you own 600 shares of common st

Question

Stock splits versus stock dividends. Assume that you own 600 shares of common stock of a company, that you have been receiving cash dividends of $6 per share per year, and that the company has a 4-for-3 stock split.

a. How many shares of common stock will you own after the stock split?
b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split?
c. What stock dividend percentage could have accomplished the same end result as the 4-for-3 stock split?

Explanation / Answer

A. 800 B. 4.50 C. 33 1/3%

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.