Bonus Plans, Inc. has 100,000 shares of common stock outstanding, no preferred stock, and common shares are selling at $35 per share. At the recent year-end, net earnings were at $200,000, which will be retained in entirety for investment purposes. A share-dividend of 10% is planned instead of cash dividends.

(A)Calculate the current earnings per share before stock dividend.

(B)You own 1,000 shares of the firm's stock. Compute your current proportionate ownership of stock. Next, calculate your proportionate ownership

after the share-dividend payout.

(C)Calculate the market price per share after the share-dividend payout.

(D)Calculate the earnings per share after the share-dividend payout.

(E)What is the value of your ownership both before and after the share-dividend payout?

(F)Should you have a preference, either before or after the share-dividend payout? Explain.