Assume that you own 600 shares of common stock of a company, that you have been receiving

Question:

Assume that you own 600 shares of 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.

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

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...