You currently own 200 shares of Hanover Co.The stock closed at a price of $22.38 a share today.Tomorrow morning a 10 percent stock dividend will occur.What will be the change in the value of your investment tomorrow assuming there are no other factors affecting the market price of the stock?

Question

Quizplus · Accepted Answer

Current value = 200 × $22.38 = $4,476Tomorrow's value = (1.1 × 200)× ($22.38/1.1)= $4,476Change in value = $4,476 - 4,476 = $0

You Currently Own 200 Shares of Hanover Co