What proportion of the ford car company will jessica

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Jessica currently holds 10,000 shares in Ford Car Company. The company has issued a total of 500,000 ordinary shares and no preference shares are issued. The available earnings for ordinary shareholders totals $560,000 and its shares are currently selling for $11 per share in the market. The company intends to retain these earning and pay a 10% bonus shares instead of a cash dividend.

Find the following:

Question 1: What are the current earnings per share (EPS) before the bonus shares distribution?

Question 2: Expressed as a percentage, what proportion of the Ford Car Company will Jessica own after the bonus share distribution?

Question 3: What will be the market value of Jessica's shares after the bonus share distribution, if the market price is $10 per share?

Reference no: EM132706545

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