What will be the price of the stock after the stock dividend

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Question - RCB has 2 million shares of common stock outstanding. Net income is 550.000, and the P/E ratio for the stock is 10. Management is planning a 20 percent stock dividend.

a. What will be the price of the stock after the stock dividend?

b. If an investors own a 100 shares prior to the stock dividend, does the total value of his or her shares change? Explain.

Reference no: EM132798005

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