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SVEN [57.7K]
3 years ago
8

NewTech Corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of

$800,000. The current price of the stock is $48. What will be the firm's earnings per share after the stock dividend?
Business
1 answer:
AleksAgata [21]3 years ago
6 0

Answer:

Earnings per share after the stock dividend is $3.636.

Explanation:

Number of outstanding shares is 200,000.

After tax profits is $800,000.

Current stock price=$48.

Stock dividend=10%

Number of share outstanding after stock dividend

=200,000*(1+10%)

=220,000

Earnings per share after stock dividend

=$800,000/220,000

=$3.636

So, the earnings per share after the stock dividend is $3.636.

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The price index in the first year is 110, in the second year is 100, and in the third year is 96. The economy experienced
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a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.

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Answer:

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Cheers

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3 years ago
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