Problem:
Martha's Baked Goods has 15,000 shares of stock outstanding at a market price of $24.10 per share.
Required:
Question: What will the price per share be after the firm declares a 5 percent stock dividend?
- $25.31
- $24.10
- $22.90
- $22.95
- $25.40
Note: Provide support for your rationale.