Cautious Company is a little short of cash so they are planning to do an 11% sto

Question

Cautious Company is a little short of cash so they are planning to do an 11% stock dividend instead. Callie has 375 shares of Cautious and they are currently selling at $32.00 per share. Cautious has a total of 10,000 shares outstanding.

Before the stock dividend, what is the total value of Callie’s investment in Cautious Company? ___________________

After the stock dividend, Callie will have ______________ shares.

After the stock dividend, the shares will be worth ___________ per share.

After the stock dividend, the total value of Callie’s investment in Cautious Company will be _____________________.

Explanation / Answer

1. 32 * 375 = $12,000

2. 375 * 1.11 = 416.25

3. 12,000/416.25 = $28.83

4. $12,000  

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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