The stock price after the stock dividend = $3636
<h3>What is Stock dividend?</h3>
A common stock dividend is a payment made from a company's profits to holders of common stock. The payout is made in the form of stock or cash, much like regular dividends. The amount of the common stock dividend may be regulated by law, especially if it is paid as a cash distribution that is effectively a liquidation.
<h3>What is shares outstanding?</h3>
All of the shares of a corporation that have been approved, issued, and purchased by investors and are now owned by them are referred to as outstanding shares. They differ from treasury shares, which are stock held by the corporation itself and have no rights that can be exercised.
<h3>According to the given information:</h3>
There are 200,000 shares in circulation.
Profits after taxes amount to $800,000.
$48 is the current stock price.
Stock dividend equals 10%
number of shares outstanding following a stock dividend
=200,000*(1+10%)
=220,000
earnings per share following stock dividends
=$800,000/220,000
=$3.636
As a result, $3.636 worth of earnings per share remain after the stock dividend.
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