Question
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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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
