A company has 1,000 common shares outstanding. Market price is $12. The company announces a 20% stock dividend. The market price will be $10. However, due to the expectation of future more cash dividend, the market price may increase to 10.5 or so.
A company has 1,000 common shares outstanding. Market price is $12. The company announces a 20% stock dividend. The market price will be $10. However, due to the expectation of future more cash dividend, the market price may increase to 10.5 or so.