1. You presently own 200 shares of a stock at $50 per share. The dividend is $1.20 per share. Management plans a 2:1 stock split. After the stock split is complete,

management plans an additional stock dividend of 3%.

a) After the split, how many shares would you have and what is the price?

b) After the split, what is the cash dividend?

c) After the stock dividend, how many shares would you have and what is the price per share?

d) Briefly explain why management might split the stock.