Stock split or stock dividend-ibm implementation


Problem: Market prices following a stock split or stock dividend.

Assume that IBM is selling for $180 per share. IBM implements one of the following 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?

a. An 8% stock dividend

b. A 50% stock dividend

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Business Economics: Stock split or stock dividend-ibm implementation
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