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olga_2 [115]
3 years ago
9

Heidi owns 400 shares of Boyd Enterprises stock, which is valued at $17 a share. Boyd Enterprises just declared a 10 percent sto

ck dividend. How many shares will Heidi own and what will the price per share be after the dividend?
Business
1 answer:
Leno4ka [110]3 years ago
4 0

Answer:

After stock dividend, Heidi will own 440 shares at a price of $15.45 per share.

Explanation:

Heidi owns 400 shares.

The price of these shares is $17/per share.

The firm announces a 10% stock dividend.

The number of shares owned after dividend

=Current shares+10% of current shares

=400+10% of 400

=400+40 shares

=440 shares

Price per share after dividend

=Current value of shares/ number of shares after stock dividend

=\frac{400*17}{440}

=\frac{6800}{440}

=$15.45

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