Lots of fiend Curling Supplies Limited (LBCS) has 1 million shares outstanding as of November 30, 2010.

Question:

Lots of fiend Curling Supplies Limited (LBCS) has 1 million shares outstanding as of November 30, 2010. The share price is $25.00.
Required:
Calculate the new share price on December 1, 2010, if:
(a) LBCS executes a four-for-one stock split.
(b) LBCS declares a stock that will give each shareholder three shares for every one they currently own.
What is your conclusion about the post-event stock price for a four-for-one stock split and a three-share stock per share?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...