Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that you own 4,000 shares of Briant incorporated's common stock and that you currently receive cash dividends of $0.6 per share per year. Required:

image text in transcribed
Assume that you own 4,000 shares of Briant incorporated's common stock and that you currently receive cash dividends of $0.6 per share per year. Required: a. If Briant incorporated deciared a 10% stock dividend, how many shares of common stock would you receive as a dividend? b. Caiculate 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). c. If the cash dividend remained at $0.6 per share after the stock dividend, what per share cash dividend amount without a stock dividend would have accomplished the same total cash dividend? d. Why might a company consider having a dividend policy of paying a $0,10 per share cash dividend every year and also issuing a 10% stock dividend every ycar? Complete this question by entering your answers in the tabs below. a. If Briant incorporated deciared a 10% stock dividend, how many shares of common stock would you receive as a dividend? 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). fotet Round your answer to 2 decimal places. c. If the cash dividend remained at $0.6 per share after the stock dividend, what per share cash dividend amount without o stock dividend would have accomplished the same total cash dividend? Note: Round your answer to 3 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Belverd E. Needles

5th Edition

0395698022, 978-0395698020

More Books

Students also viewed these Accounting questions