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Stock dividend - Investor Personal Finance Problem Security Data Company has outstanding 60,000 shares of common stock currently soling at $40 per share. The firm

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Stock dividend - Investor Personal Finance Problem Security Data Company has outstanding 60,000 shares of common stock currently soling at $40 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 10% stock dividend in lieu of a cash dividend. a. Determine the firm's current eamings por share b. If Sam Waller currenty owns 600 shares of the firm's stock, determine his proportion of ownership currently and under the proposed 10% stock dividend plan. c. Calculate the market price per share under the 10% stock dividend plan. d. For the proposed 10% 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 10% stock dividend plan? 1. Should Sam have any preference with respect to the proposed stock dividend? a. The ferris current earnings pet shate is $ (Round to the nearest cent) b. If Sam currently owns 600 shares of the firm's stock, the propertion of the Erm Sam currenty owns is (Round to two decimal places.) The proportion of the firm Sam will own ater the 10% stock dividend is 4. (Round to two decimal places.) c. If Secunify pays a 10% stock dividend, the market price of stock after the dividend is $ (Round to the nearest cent.) d. The firmis oamings per share after payment of the stock dividend is 5 (Round to the nearest cent) 6. The value of Samis holdings before the stock dividend is 5 (Round to the nearest dolac) The vatue of Samis holdings afier the stock dividend is 1 (Round to the neasest dolac.) 1. Should Sam have any prefurence with respect to the propoted stock dividend plan? (Sielect the best answer below.) A. Sam shoud preler a 10x stock dividend because he will have more shares. B. Sam should have no profecence becouse his total value will remain essentially the same c. Sam should prefer a 10% stock dividend because his total value will be signcicanty more

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