Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sellsat $125 per share.a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.)Number of sharesb. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.)Total valuec. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend? (Do not roundintermediate calculations.)Number of shares held

Stock Dividends: A stock dividend is a dividend paid by a corporation to its shareholders. In this…

Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $125 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) Number of shares

Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $125 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) Number of shares

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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Question

Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells
at $125 per share.
a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.)
Number of shares
b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.)
Total value
c. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend? (Do not round
intermediate calculations.)
Number of shares held

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