Stock​ dividend: Investor Personal Finance Problem   Security Data Company has 80,000 shares of common stock worth ​$35

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answerhappygod
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Stock​ dividend: Investor Personal Finance Problem   Security Data Company has 80,000 shares of common stock worth ​$35

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Stock​ dividend: Investor Personal Finance
Problem   Security Data Company has 80,000 shares of common stock
worth ​$35 per share. The firm most recently had earnings available
for common stockholders of ​$107,000​, but it has decided to retain
these funds and is considering a 10​% stock dividend in lieu of a
cash dividend.
a. Determine the​ firm's current earnings per share.
b.  If Sam now owns 800 ​shares, determine his proportion of
ownership currently and under the proposed 10​% stock dividend
plan.
c. Calculate the market price per share under the 10​% stock
dividend plan.
d.  For the proposed 10​% stock dividend​ plan, calculate
the earnings per share after payment of the stock dividend.
e.  What is the value of​ Sam's holdings under the 10​%
stock dividend​ plan?
f. Should Sam have any preference with respect to the proposed
stock​ dividend?
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