cookies and cream has 50,000 shares outstanding at a market price of $91.64. what will the share price be if the company declares a stock dividend of 17.5 percent?

Respuesta :

Out of the choices provided above, it can be concluded to state that the share price of Cookies and Cream Company will be $77.99, if it has 50,000 shares outstanding at a market price of $91.64, and it declares a stock dividend of 17.5 percent. Therefore, the option B holds true.

What is the significance of share price?

The share price of a stock can be referred to or considered as the price that prevails in the market for the shares of a company, which is derived as per the market conditions and the number of shares outstanding in the market.

The calculation of share price for the above information will be done as,

Share Price = Market Price / (1+Dividend)

Share Price = 91.64 / 1.175

Share Price = $77.99.

Therefore, the option B holds true and states regarding the significance of share price.

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The missing choices are added below to the incomplete question.

$107.68

$77.99

$81.40

$91.64