The stock of Lamatar Company will go ex-dividend tomorrow. The current market-value based balance sheet of the company is follows:
Assets		Liabilities & Equity
Cash	$ 260,000	Equity	$ 1,050,000
Fixed Assets	$ 790,000
	$ 1,050,000		$ 1,050,000
Other information:
Number of outstanding shares:		21000
Cash dividend (per share):		$5.00
				Now suppose that Lamatar again changes its mind and decides to issue a 10% stock dividend instead of either cash dividend or share repurchse plan.
				v. Prepare the pro-forma balance sheet (as shown above) after the stock dividend payment?
				vi. What will be the price per share after the stock dividend?
				vii. If you currently own 10% shares of Lamatar Company, what will be the changes in the value of your investment in Lamatar stocks?
viii. Based on your answers to (i) to (vii) above, compare the effect of different divided payout policies on stock price, market value of the firm, the shareholder's wealth.