Accounting: The answers are in bold. However, I'm not understanding how they came up with the dividend amount of 1.05 to move forward with the answer. And why do you divide the 2.52 by 1.05?

Calculate stock dividend shares and cash dividend amounts - Assume that you own 6,000 shares of Briant, Inc.'s common stock and that you currently receive cash dividends of $2.52 per share per year.

a. If Briant, Inc., declared a 5% stock dividend, how many shares of common stock would you receive as a dividend? 300

b. Calculate the cash dividend per share amount to be paid after the stock dividend that would result in the same total cash dividend (as was received before the stock dividend).

$2.52 / 1.05 =$2.40

Proof:

Total dividend on 6,000 shares @ $2.52 = $15,120

Total dividend on 6,300 shares @ $2.40 = $15,120