Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why companies are issuing stock dividend? What are the influential factors and the impact of it to the business and stockholders point of view. (2

Why companies are issuing stock dividend? What are the influential
factors and the impact of it to the business and stockholders point of
view. (2 Marks)
b) The board of directors of ABC Company recently announced a 24% stock
dividend. Assuming that the current stock price is OMR 8 and there are
700,000 total ordinary shares outstanding of OMR 0.600 each.
You are required to determine the following:
i) Determine the market capitalization of the Company before the stock dividend.
ii) Determine the increase in shares outstanding due to a 20% stock dividend.
iii) Determine the new total shares outstanding.
iv) Determine the price per share of the Company after stock dividend.
(3 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Which companys ratios match Column B?

Answered: 1 week ago