Solved

Outpost Has 2 Million Shares of Common Stock Outstanding; Net

Question 110

Essay

Outpost has 2 million shares of common stock outstanding; net income is $300,000; the P/E ratio is 9; and management is considering an 18% stock dividend.What will be the expected effect on the price of the common stock? If an investor owns 300 shares in the company,how does this change his total value? Explain.

Correct Answer:

verifed

Verified

Before dividend:
blured image
The total ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions