Question
Suppose that, back in the day, my grandmother's arch rival developed a sweet, but unhealthy and highly addictive beverage called Dr. Pepper. Suppose Dr. Pepper,
Suppose that, back in the day, my grandmother's arch rival developed a sweet, but unhealthy and highly
addictive beverage called Dr. Pepper. Suppose Dr. Pepper, Inc. (DPI) went public on the same day that
NSI went public (i.e. July 4th, 1976). Suppose you wanted to diversify your portfolio and bought a
share of DPI on the same day you bought a share of NSI (i.e. November 2, 2005). How many shares
would you have on October 1, 2010, if DPI offered the following stock dividends and stock splits:
1986 - 10 percent stock dividend
2000 - 75 percent stock dividend
2003 - 5-for-4 stock split
2006 - 10- for-1 stock split
2007 - 60 percent stock dividend
2008 - 25 percent stock dividend
2009 - 3-for-4 stock split
A. 15
B. 18
C. 26
D. 150
E. 266
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