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Corporate Operations (Dividends, Book Value per Share, and Earnings per Share) 1. How do share dividends affect stock prices? 2. In what situations should the
Corporate Operations
(Dividends, Book Value per Share, and Earnings per Share)
1. How do share dividends affect stock prices?
2. In what situations should the Board Directors consider to declare a dividend of any form?
3. Suppose you have 1,000 ordinary shares of Company A. The EPS is P6.00, the DPS is
P3.00, and the stock sells for P90 per share. Company A declares 10% dividends?
What would be the effect in the stockholders' equity of Company A?
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