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Matrix Corp Inc. is considering a 15 percent stock dividend. The capital accounts are as follows. 8 Common stock (3,500,eee shares) Retained earnings $35, eee,eee

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Matrix Corp Inc. is considering a 15 percent stock dividend. The capital accounts are as follows. 8 Common stock (3,500,eee shares) Retained earnings $35, eee,eee 45,000,000 580,000,000 Net worth 02:56 The company's stock is selling for $28 per share. The company had total earnings of $7,000,000 with 3,500,000 shares outstanding and EPS were $2.00. The firm has a P/E ratio of 14.00(rounded) a. Restate the equity section at year end after the 15 percent stock dividend. Show the new capital accounts $ Common stock Retained earnings Net worth $ b. Restate the EPS and share price after the stock split (Assume the P/E ratio remains constant). (Do not round intermediate calculations. Round the final answers to 2 decimal places.) EPS Share price c. How many shares would an investor have if he or she originally had 100? Number of shares shares d. What is the investor's total investment worth before and after the stock dividend if the P/E ratio remains constant? (There may be a slight difference due to rounding) (Do not round intermediate calculations. Round the After stock dividend answer to 2 decimal places.) Total investment $ Before stock dividend After stock dividend $ Activate Windows e-1. Assume Mc Neo, the president of Matrix Corp. wishes to benefit the shareholder by keeping the cash dividend at a previous level of $115 in spite of the fact that the shareholders now have 15 percent more shares. Because the cash dividend is not reduced the share price is assumed to remain at $28. What is an investor's total investment worth after the stock dividend it he/she had 100 shares before the stock dividend? Total investment --2. Under the scenario described in parte-1, is the investor better of? Yes O No 1. What is the dividend yield on the shares under the scenario described in parte-1? (Round the final answer to 2 decimal places) Dividend yield Activate Windows

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