Heidi owns 400 shares of Boyd Enterprises stock, which is valued at $13 a share.Boyd Enterprises just declared a stock dividend of 4 percent.How many shares will Heidi own and what will be the price per share after the dividend?

Question

Quizplus · Accepted Answer

Heidi will receive 4% more shares, which is 16 shares (4% of 400), so she will own 416 shares. The total value of her shares remains the same, so the price per share will be $12.50 ($5200/416).

Heidi Owns 400 Shares of Boyd Enterprises Stock, Which Is