Saturn Corporation Has Just Declared a 25% Stock Dividend

Multiple Choice

Saturn Corporation has just declared a 25% stock dividend. The stock was selling for $18 before the stock dividend. The stock will pay a quarterly cash dividend of 8 cents per share after the stock dividend. If the 8-cent dividend is maintained over the next year, what will be the post-stock dividend yield?

A) 2.13%
B) 2.22%
C) 0.56%
D) 1.44%