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Security Data Company has 4 0 comma 0 0 0 shares of common stock worth $ 4 2 per share. The firm most recently had
Security Data Company has comma shares of common stock worth $ per share. The firm most recently had earnings available for common stockholders of $ but it has decided to retain these funds and is considering a stock dividend in lieu of a cash dividend.
a The firm's current earnings per share is $Round to the nearest cent.
b If Sam currently owns shares of the firm's stock, the proportion of the firm Sam currently owns is Round to two decimal places.
The proportion of the firm Sam will own after the stock dividend is Round to two decimal places.
c If Security pays a stock dividend, the market price of stock after the dividend is $Round to the nearest cent.
d The firm's earnings per share after payment of the stock dividend is $Round to the nearest cent.
e The value of Sam's holdings before the stock dividend is $Round to the nearest dollar.
The value of Sam's holdings after the stock dividend is $Round to the nearest dollar.
f Should Sam have any preference with respect to the proposed stock dividend plan? Select the best answer below.
A Sam should prefer a stock dividend because he will have more shares.
B Sam should prefer a stock dividend because his total value will be significantly more.
C Sam should have no preference because his total value will remain essentially the same.
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