Answer:
option B is correct
market price per share be after the dividend is $7.27
Explanation:
Given data
share = 10000
stock value = $1.00 per share
market value = $8 per share
capital in excess = $32,500
common stock account = $10,000
retained earnings account = $42,700
stock dividend = 10%
to find out
market price
solution
we will find here market price / share that is given here formula
Market price is = ( share × market value) ÷ ( share × 1.10)
put here all these value we get
Market price = ( 10000 × 8 ) ÷ (10000 × 1.10)
market price = 80000 ÷ 11,000
so market price = 7.27
hence option B is correct
market price per share be after the dividend is $7.27
