Question: Now suppose that Payout again changes its mind and decides to issue a 1% stock dividend instead of either issuing the cash dividend or repurchasing

Now suppose that Payout again changes its mind and decides to issue a 1% stock dividend instead of either issuing the cash dividend or repurchasing 1% of the outstanding stock. How would this action affect a shareholder who owns 100 shares of stock? Compare with your answers to Practice Problems 9 and 10.

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