Assume that you own 60 shares of common stock of a company, that you have been receiving cash dividends of $4 per share per year, and that the company has a 5-for-4 stock split. Required: 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What stock dividend percentage could have accomplished the same end result as the stock split? а. Shares of common stock b. New cash dividend per share c. Stock dividend %
Assume that you own 60 shares of common stock of a company, that you have been receiving cash dividends of $4 per share per year, and that the company has a 5-for-4 stock split. Required: 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What stock dividend percentage could have accomplished the same end result as the stock split? а. Shares of common stock b. New cash dividend per share c. Stock dividend %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 66P
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