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10. Stock dividends and stock splits Aa Aa Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases.
10. Stock dividends and stock splits Aa Aa Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Happy Monkey Manufacturing currently has 10,00D shares of common stock management believes that its current stock price of $S0 per share is too high. The company is planning to conduct stock splits in the ratio of 2 for 1 as described in the animation outstanding. Its ertificate of 12 0 If Happy Monkey Manufacturing dedares a 2-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be Hackworth Hardware Company is one of Happy Monkey's leading competitors. Hackworth Hardware Company's market intelligence research team shares Happy Monkey's plans of announcing a stock split, influencingthe distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders. If the firm pays a 6% stock dividend, how may shares will the firm issue to its existing shareholders? O 163,200 shares O 144,0DD shares O 192,00D shares O 201,60D shares A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 3,200,0DD shares of common stock outstanding
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