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A shareholder owns 1,000 shares of stock with a stock price of $80. Assume perfect markets hold. If the stock issues a $5 cash dividend,
A shareholder owns 1,000 shares of stock with a stock price of $80. Assume perfect markets hold.
- If the stock issues a $5 cash dividend, what will be the new stock price?
- If the stock issues a 4:1 stock split, what will be the new stock price? How many shares of this stock will the shareholder now own?
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
