Determine the expected price of stock, Accounting Basics

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Determine the expected price of stock

Response to the following problem:

The Linen Corporation currently has a stock price of $100 per share. What would be the expected price of the Linen stock under each of the following types of distributions:

a. a 2:1 stock split

b. a 100% stock dividend

c. a 4:1 stock split

d. a 50% stock dividend

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Accounting Basics: Determine the expected price of stock

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Accounting Basics: Determine the expected price of stock

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