Question: Templeton Care Facilities Inc is contemplating a stock dividend The
Templeton Care Facilities, Inc. is contemplating a stock dividend. The firm’s stock price had risen over the last three years and was trading at $150 per share. The firm’s board of directors felt that the trading range should be around $50 to $100, so they wanted to initiate a stock dividend that, other things remaining the same, would result in a $50 share price. What should the stock dividend be so as to result in the desired change in the firm’s stock price?
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