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Stock dividend: Investor Personal Finance Problem Security Data Company has 80,000 shares of common stock worth $43 per share. The firm most recently had earnings
Stock dividend: Investor Personal Finance Problem Security Data Company has 80,000 shares of common stock worth $43 per share. The firm most recently had earnings available for common stockholders of $134,000, but it has decided to retain these funds is considering a 15% stock dividend in lieu of a cash dividend. a. Determine the firm's current earnings per share. b. If Sam now owns 400 shares, 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 dividend? a. The firm's current earnings per share is $ . (Round to the nearest cent.)
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