LaMike owns 1,000 shares of DAS,Inc.'s common stock.The stock has a par value of $1 per share and is currently selling for $80 per share.DAS declares a 20% stock dividend.In a perfect capital market,after the dividend Sam will have

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A 20% stock dividend means LaMike will receive an additional 20% of his current 1,000 shares, which equals 200 shares. After the stock dividend, he will have a total of 1,200 shares. However, the stock price will adjust to reflect the additional shares issued, so the new price per share will be $66.67 ($80 divided by 1.2). Therefore, LaMike will have 1,200 shares selling for $66.67 each.

LaMike Owns 1,000 Shares of DAS,Inc