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german
1 month ago
8

NewTech Corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of

$800,000. The current price of the stock is $48. What will be the firm's earnings per share after the stock dividend?
Business
1 answer:
marusya05 [3.7K]1 month ago
6 0
After the stock dividend, earnings per share stand at $3.636. To elaborate, there are 200,000 shares currently available, with after-tax profits recorded at $800,000. The current price of the shares is set at $48, while the stock dividend is at 10%. After the dividend, the updated number of shares is calculated as 200,000*(1+10%) = 220,000. Consequently, the earnings per share after the dividend is $800,000/220,000, resulting in $3.636.
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