Stock dividend and stock split


Problem: Banannas Inc. has stock currently selling for $40 per share. The company has 1,200,000 shares outstanding. What would be the effect on the number of shares outstanding and on the stock price of the following:

1. 15% Stock Dividend

2. 4-for-3 Stock Split

3. Reverse 3-for-1 Stock Split

Solution Preview :

Prepared by a verified Expert
Microeconomics: Stock dividend and stock split
Reference No:- TGS01745282

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)