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Cullumber Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 6% dividend, or (3)
Cullumber Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 6% dividend, or (3) effecting a 2 -for-1 stock split. The current share price is $14 per share. There are 125,000 shares of no-par stock outstanding. Help Cullumber make its decision by completing the following table (treat each possibility independently). Cullumber Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 6% dividend, or (3) effecting a 2 -for-1 stock split. The current share price is $14 per share. There are 125,000 shares of no-par stock outstanding. Help Cullumber make its decision by completing the following table (treat each possibility independently)
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