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    Stocks: Equity Positions and Dividend Yields

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    Please help answer the following problem. Provide step by step calculations.

    1. You own 1000 shares of XYZ Corp. and the company is about to pay a 25% stock dividend. The stock currently sells for $100 per share. What will be the number of shares that you hold and the total value of your equity position after the dividend is paid?

    2. DCH Industries pays a quarterly dividend of $2 per share. The dividend yield on its stock is reported at 4.8%. At what price is the stock selling?

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    https://brainmass.com/business/accounting-for-corporations/stocks-equity-positions-dividend-yields-166678

    Solution Preview

    1. You own 1000 shares of XYZ Corp. and the company is about to pay a 25% stock dividend. The stock currently sells for $100 per share. What will be the number of shares that you hold and the total value of your equity position after the dividend is paid?

    As a part of the financing decision the dividend policy of the firm is a residual decision and the dividends are a passive residual. So long firm is able ...

    Solution Summary

    This is a discussion on equity positions and the dividend paid for specific corporations. Step by step calculations are given for each.

    $2.19

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