Determining the value of one share


Assume that IBM is selling for $180 per share. IBM implements one of the following stock dividends or stock splits, and no other change in the value of the firm occurs. What is the value of one share for each of the following?

1. An 8% stock dividend

2. A 50% stock dividend

3. A 3-for-2 stock split

4. A 2-for-1 stock split

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Business Management: Determining the value of one share
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