Parcells Pools has 5,000 shares of stock outstanding and a current stock price of $5.00 per share. Parcells has no debt. The company is short on cash and announces that instead of a cash dividend, the firm will pay a stock dividend-one new share of stock for each 10 held. a. Calculate the new share price after the stock dividend goes into effect. b. LT. a Parcells shareholder with 100 shares, wonders what the stock dividend means to him. Show L.T. that the stock dividend does not increase his wealth. Sandstone Real Estate estimates dividends next year at $150. The firm's required rate of return on equity is 12 percent. If the firm's rate of growth in annual dividends is 6 percent, calculate the price per share of Sandstone using the perpetual growth model. Elvis Humperdinck is a retired tightrope walker. Mr. Humperdinck relies mostly on his dividend check from RRR Corp. to meet living expenses. He owns 10,000 shares of RRR, which pays a dividend of $1 per share, and he is in the 15 percent tax bracket. a. Calculate Mr. Humperdinck's after-tax dividend proceeds. b. Suppose that the taxing authorities raise Mr. Humperdinck's tax rate to 25 percent. How much higher would the dividend of RRR need to be in order to keep Elvis's after-tax dividend income the same as it was under the old tax rates