Question

A firm currently has 8 million shares of stock outstanding that have a current market price...

A firm currently has 8 million shares of stock outstanding that have a current market price of $12. If all else remains constant, what will be the share price after each of the following:

  1. A 20% stock dividend.
  2. A four-for-one stock split
  3. A 32.5% stock dividend

Indicate the detailed steps on how to use a FINANCIAL CALCULATOR to solve the problems.

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Answer #1

As no special functions are to be performed, we can also calculate on simple calculator. we just have to multiply and divide the values

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