The firm announces a 050 per share dividend in your answer


You purchased 200 shares of H2O Corporation stock at a price of $20. Consider each of the following announcements separately. What will the price of the stock be after each change? How many shares will you own? What will be the total value of your holdings (value of stock plus any income)? a. The fi rm announces a 10 percent stock dividend. b. The firm announces a two-for-one stock split . c. The firm announces a $0.50 per share dividend (in your answer use the price of the stock on the ex-dividend date). d. The fi rm announces it will repurchase 10 percent of its shares; you do not offer to sell any of your shares.

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Finance Basics: The firm announces a 050 per share dividend in your answer
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