You purchased 200 shares of H2O Corporation stock at a price of $20. Consider each of the following announcements separately. What will the price of the stock be after each change? How many shares will you own? What will be the total value of your holdings (value of stock plus any income)?
a. The firm announces a 10 percent stock dividend.
b. The firm announces a 2-for-1 stock split
c. The firm announces a $0.50 per share dividend (in your answer use the price of the stock on the ex-dividend date).
d. The firm announces it will repurchase 10 percent of its shares; you do not offer to sell any of your shares.

  • CreatedMarch 27, 2015
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