Percentage increase in cash dividend
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Winkie Baking has just announced a 100 percent stock dividend. The annual cash dividend per share was $2.40 before the stock dividend. Winkie intends to pay $1.40 per share on each of the new shares. Compute the percentage increase in the cash dividend rate that will accompany the stock dividend.
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Solution Summary
The solution explains how to calculate the percentage increase in cash dividend after a stock dividend
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Let us assume that a shareholder has 100 shares.
The current dividend is $2.40 per ...
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