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

Question

2 years ago

7

after a stock dividend of 6 percent

1 answer:

Cloud [144] · Answer 1 · 2022-09-03T05:26:54+03:00

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