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Business, shares

  1. Apr 15, 2012 #1
    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
    (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?

  2. jcsd
  3. Apr 19, 2012 #2


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    think about if the stock dividend would change the aggregate value of all the outstanding shares
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