FCF Co. has

16,000

shares outstanding and a total market value of

$1

million,

$330

thousand of which is debt and the other

$670

thousand is equity. It is planning a

10%

stock dividend.

a. What is the stock price before the dividend, and what will it be after the dividend?

b. If an investor owns

3,000

shares before the dividend, what will be the total value of her investment in FCF before and after the dividend?

Question content area bottom

Part 1

a. What is the stock price before the dividend and what will it be after the dividend?

The stock price before the dividend is

$41.8841.88.

(Round to the nearest cent.)

Part 2

The stock price after the dividend is

$38.0738.07.

(Round to the nearest cent.)

Part 3

b. If an investor owns

3,000

shares before the dividend, what will be the total value of her investment in FCF before and after the dividend?The total value of her investment before the dividend is

$125,640125,640.

(Round to the nearest dollar.)

Part 4

The total value of her investment after the dividend is

$126,773126,773.

(Round to the nearest dollar.)