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?© BrainMass Inc. brainmass.com October 10, 2019, 12:03 am ad1c9bdddf
Let us assume that a shareholder has 100 shares. The current dividend is $2.50 per share
Total dividend ...
The solution explains how to calculate the effective rate of increase in the dividends after a stock dividend