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Business, shares

by monsmatglad
Tags: business, shares
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monsmatglad
#1
Apr15-12, 07:39 AM
P: 50
29. A firm has 1 million shares outstanding with a par value of 100 kroner. Retained
earnings are 200 million kroner and the current share price is 325 kroner. The firm
undertakes a 20% stock dividend.

What do you expect the market price of the share to be immediately after the stock
dividend?
(a) 265.13 kroner
(b) 270.83 kroner
(c) 325.00 kroner
(d) 390.00 kroner
(e) I choose not to answer
could someone point me in the right direction here?

mons
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BWV
#2
Apr19-12, 08:51 PM
P: 328
think about if the stock dividend would change the aggregate value of all the outstanding shares


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