Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume that you own 5,000 shares of Briant Incorporated's common stock and that you currently receive cash dividends of $0.8 per share per year.
Assume that you own 5,000 shares of Briant Incorporated's common stock and that you currently receive cash dividends of $0.8 per share per year. Required: a. If Briant Incorporated declared 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). c. If the cash dividend remained at $0.8 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 year? Complete this question by entering your answers in the tabs below. Req A to C Req D es a. If Briant Incorporated declared 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). Note: Round your answer to 2 decimal places.. c. If the cash dividend remained at $0.8 per share after the stock dividend, what per share cash dividend amount without a stock dividend would have accomplished the same total cash dividend? Note: Round your answer to 3 decimal places. a. Dividend shares b. Total cash dividend per share c. Total cash dividend per share Bed & in C Req D > Show less &
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started