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    Effective rate of increase in the dividends

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    Tulia Dairy pays a $2.50 cash dividend and earns $5 per share. The cash dividend has recently been increased to $2.65 per share, and a 3 percent stock dividend has been declared. What is the effective rate of increase in the dividends for Tulia as a result of this action?

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    https://brainmass.com/business/accounting-for-corporations/effective-rate-increase-dividends-277186

    Solution Preview

    Let us assume that a shareholder has 100 shares. The current dividend is $2.50 per share
    Total dividend ...

    Solution Summary

    The solution explains how to calculate the effective rate of increase in the dividends after a stock dividend

    $2.19