Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Stck divident- investor Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 30,000 shares of common stock currently selling at $45 per share.
Stck divident- investor
Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 30,000 shares of common stock currently selling at $45 per share. The firm most recently had earnings available for common stockholders of $116,000, but it has decided to retain these funds and is considering a 15% stock dividend in lieu of a cash dividend a. Determine the firm's current earnings per share. b. If Sam Waller currently owns 800 shares of the firm's stock, determine his proportion of ownership currently and under the proposed 15% stock dividend plan C. Calculate the market price per share under the 15% stock dividend plan. d. For the proposed 15% stock dividend plan, calculate the earnings per share after payment of the stock dividend. e. What is the value of Sam's holdings under the 15% stock dividend plan? f. Should Sam have any preference with respect to the proposed stock dividendStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started