Calculate stock dividend shares and cash dividend amounts. Assume that you own 4,000 shares of Blueco, Inc.'s,

Question:

Calculate stock shares and cash amounts. Assume that you own 4,000 shares of Blueco, Inc.'s, and that you currently receive cash dividends of $0.84 per share per year.

Required:
a. If Blueco, Inc., declared a 5% stock how many shares of would you receive as a Calculate the cash per share amount to be paid after the stock that would result in the same total cash (as was received before the stock If the cash remained at $0.84 per share after the stock what per share cash amount without a stock would have accomplished the same total cash Why would a company have a policy of paying a $0.10 per share cash and issuing a 5% stock every year?

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...