You currently own 200 shares of Hanover Co. The stock closed at a price of $22.38 a share today. Tomorrow morning a 10 percent stock dividend will occur. What will be the change in the value of your investment tomorrow assuming there are no other factors affecting the market price of the stock?
a. $0
b. -$447.60
c. $447.60
d. -$2.24
e. $2.24 (this was wrong answer)
| You currently own 200 shares of Hanover Co. The stock closed at a price of $22.38 a share today. Tomorrow morning a 10 percent stock dividend will occur. What will be the change in the value of your investment tomorrow assuming there are no other factors affecting the market price of the stock? a. $0 b. -$447.60 c. $447.60 d. -$2.24 e. $2.24 (this was wrong answer) |
Related questions
Simmons Mineral Operations, Inc., (SMO) currently has 450,000 shares of stock outstanding that sell for $90 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
| a. | SMO has a four-for-three stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| b. | SMO has a 10 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| c. | SMO has a 47.5 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| d. | SMO has a four-for-seven reverse stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| e. | Determine the new number of shares outstanding in parts (a) through (d). (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) |
| a. | New shares outstanding | |
| b. | New shares outstanding | |
| c. | New shares outstanding | |
| d. | New shares outstanding | |
