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help Ganter Corp manufactures foot wear. The corporation currently has 6,000,000 shares of stock outstanding with a current market price of $9. If all else
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Ganter Corp manufactures foot wear. The corporation currently has 6,000,000 shares of stock outstanding with a current market price of $9. If all else remains constant: (A) What will be the price of Ganter Corp's shares after a 20% stock dividend? What will be the new number of shares outstanding? [4 marks] (B) What will be the price of Ganter Corp's shares after a 4 for 1 stock split? What will be the new number of shares outstanding? [ 3.35 marks] (C) Explain what is a stock dividend, and how is it similar to a stock split. [3 marks] (D) You owned 100 shares in Ganter Corp at the current market price of $9. You learned of the 20% stock dividend and were excited about receiving additional shares. What is your total shares worth: (1) before the stock dividend and (ii) after the stock dividend? (iii) Explain the difference. [ 3x1 = 3 marks]Step by Step Solution
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