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HiTec Is Growing Fast and Wishes to Retain All Its

Question 55

Multiple Choice

HiTec is growing fast and wishes to retain all its earnings to finance future growth.Instead of a cash dividend, HiTec declares a 10 percent stock dividend.If the price per share of HiTec stock is $30 before the ex-dividend date, what will be the price on the ex-dividend date?


A) $27.27
B) $27.94
C) $33.00
D) $27.00

Correct Answer:

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