Verbal Communications has 18,400 shares of stock outstanding with a par value of $1 per share and a market value of $43 per share. The firm just announced a stock dividend of 100 percent. What is the market value per share after the dividend?
A) $21.50
B) $20.50
C) $27.00
D) $26.50
E) $43.00

Question

Quizplus · Accepted Answer

A 100% stock dividend doubles the number of shares, so the market value per share is halved from $43 to $21.50.

Verbal Communications Has 18,400 Shares of Stock Outstanding with a Par