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1 . How might a 4 % stock dividend influence a shareholder currently holding 1 0 % of a company with a stock price of

1. How might a 4% stock dividend influence a shareholder currently holding 10% of a
company with a stock price of $30 per share, and total earnings of $2,500,000?
Considering the firm's 1,600,000 shares outstanding, kindly calculate both the current and
post stock-dividend EPS, P/E Ratio, the number of shares owned, and the corresponding
ownership value.
Before Dividend
Shares Outstanding
After Dividend
Earnings per Share (EPS)
Stock Price
P/E Ratio
Total Market Value
Shares Owned
Ownership Value

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