An investor owns 1000 shares of stock in ABC Corp. with a market value of $1,100....
An investor owns 1000 shares of stock in ABC Corp. with a market value of $1,100. ABC declares a 10% stock dividend. After the dividend is paid, John owns____________ 1000 shares with a market value of $1,000. 1000 shares with a market value of $1,100. 1100 shares with a market value of $1,100. 1100 shares with a market value of $1,000.
Homework Answers
Price after STock Div = Price before Stock DIv / [ 1 + Stock DIv% ]
= $ 1100 / [ 1 + 0.1 ]
= $ 1100 / 1.1
= $ 1000
No. of Shares after stock DIv = Original Shares + Stock DIv
= 1000 + [ 1000 * 10% ]
= 1000 + 100
= 1100 shares.
1100 shares with Market Value of $ 1000
OPtion C is corrcts
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An investor owns 1000 shares of stock in ABC Corp. with a market
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