The market price of the stock is $50 per share. You own 160 shares of the stock.
Question:
The market price of the stock is
$50 per share. You own 160 shares of the stock.
a. If you sold your stock on March 20, what would be the price per share, all other things the same? (No signaling effect.)
b. After the stock dividend is paid, how many shares of stock will you own?
c. At what price would you expect the stock to sell on April 2, all other things the same? (No signaling effect.)
d. What will be the total value of your holdings before and after the stock dividend, all other things the same?
e. If there were an informational or signaling effect, what would be the effect on share price?
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