Stock dividend: Investor Personal Finance Problem

Security Data Company has 50,000 shares of common stock worth $36 per share. The firm most recently had earnings available for common stockholders of $104,000, 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 earnings per share.

b.If Sam now owns 600 shares, 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?

f. Should Sam have any preference with respect to the proposed stock dividend?