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AveGali [126]
3 years ago
7

Fresh Baked Goods has 36,800 shares of stock outstanding at a market price of $24.91 per share. What will be the price per share

after a stock dividend of 6 percent
Business
1 answer:
Cloud [144]3 years ago
5 0

Answer:

$23.50 per share

Explanation:

The computation of the price per share after considering the stock dividend for the 6% is shown below:

= (Number of shares outstanding × market price per share) ÷ (Number of shares outstanding × 1 + stock dividend )

= (36,800 shares × $24.91) ÷ (36,800 shares × 1.06)

= $916,688 ÷  39,008 shares

=  $23.50 per share

Hence, the price per share is $23.50 per share

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