Question
(Stock dividend) Templeton Care Facilities, Inc. was contemplating a stock dividend. The firm's stock price had risen over the last three years and was trading
(Stock dividend)Templeton Care Facilities, Inc. was contemplating a stock dividend. The firm's stock price had risen over the last three years and was trading at $154.78 per share. The firm's board of directors felt that the trading range should be around $55 to $105, so they wanted to initiate a stock dividend that, other things remaining the same, would result in a $55 share price. What should the stock dividend be so as to result in the desired change in the firm's stock price?
(Q) The stock dividend should be ( )%. (Round to one decimal place.)
Step 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