17-4B. (Stock dividentf) DCA has 2.5 million shares of common stock outstanding. Net income~ $600,000, and the

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17-4B. (Stock dividentf) DCA has 2.5 million shares of common stock outstanding. Net income~

$600,000, and the PIE ratio for the stock is 10. Management is planning an 18 percent stockdividend.

What will be the price of the stock after the stock dividend? Ifan investor owns 120 shares before the stock dividend, does the total value of his or her shares change? Explain.

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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Question Posted: Jul 24, 2024 12:03 PM

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17-4B. (Stock dividentf) DCA has 2.5 million shares of common stock outstanding. Net income~ $600,000, and the

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Financial Management Principles And Applications

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