What Will the Market Price of the Share Be After a 20% Stock Dividend?

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The discussion centers on the impact of a 20% stock dividend on the market price of a firm's shares. With 1 million shares outstanding at a par value of 100 kroner and retained earnings of 200 million kroner, the current share price is 325 kroner. After the stock dividend, the expected market price of the share is calculated to be 270.83 kroner, reflecting the dilution effect of the additional shares issued.

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

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