What will the stock price be after the dividend

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Reference no: EM131996522

Stock Price $68
EPS $6.00
Dividends per share $1.24
Payout ratio 20.66%
Shares Outstanding 150M

Part 1. B&O Railroad Inc. transports industrial products and supplies throughout the North Eastern United States. Selected financial information for B&O is provided in the table below. B&O is considering a stock dividend of 7.5%. What will the stock price be after the dividend (Assuming no other changes)?

A. $62.80 B. $63.00 C. $63.26 D. $70.66 E. $73.26

Part 2. B&O is considering a stock dividend of 5%. What will earnings-per-share be after the dividend?

A. $.66 B. $4.05 C. $4.61 D. $5.71 E. $5,91

Reference no: EM131996522

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