Computation of shares of common stock and cash dividends

Reference no: EM1314954

Stock split versus stock dividends. Assume that you own 600 shares of common stock of a company, that you have been receiving dividends of $6 per share per year, and that the company has a 4-for-3 stock split.

a) How many shares of common stock will you own after the stock split?

b) What new cash dividend per share amount will result in the same total dividend income as you received before the stock split.

Reference no: EM1314954

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