Stock dividend: Investor Personal Finance Problem Security Data Company has 30,000 shares of common stock worth $45 per
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Stock dividend: Investor Personal Finance Problem Security Data Company has 30,000 shares of common stock worth $45 per
Company has 30,000 shares of common stock worth $45 per share. The firm most recently had earnings available for common stockholders of 5130,000, but it has decided to retain these funds and is considering a 5% stock dividend in lieu of a cash dividend a. Determine the firm's current earnings per share b. ir Sam now owns 800 shares determine his proportion of ownership currently and under the proposed 5% stock dividend plan c. Calculate the market price per share under the 5% stock dividend plan. d. For the proposed 5% stock dividend plan, calculate the earnings per share after payment of the stock dividend, 6. What is the value of Sar's holdings under the 5% stock dividend plan? Should Sam have any preference with respect to the proposed stock dividend?
Stock dividend: Investor Personal Finance Problem Security Data