HiTec Is Growing Fast and Wishes to Retain All Its

Multiple Choice

HiTec is growing fast and wishes to retain all its earnings to finance future growth. Instead of a cash dividend, HiTec declares a 10% stock dividend. If the price per share of HiTec stock is $30 before the ex-dividend date, what will be the price on the ex-dividend date?

A) $27.27
B) $27.94
C) $33.00
D) $27.00