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( c ) The Kohinoor Company has the following shareholders' equity account: The current market price of the stock is Tk . 6 0 per
c The Kohinoor Company has the following shareholders' equity account:
The current market price of the stock is Tk per share.
Required:
i What will happen to this account and to the number of shares outstanding with a
percent stock dividend? a for stock split? a for reverse stock split?
ii In the absence of an informational or signaling effect, at what share price should the
common stock sell after the percent stock dividend? What might happen to stock
price if there were a signaling effect?
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