Dividend per share calculation
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After a 5-for-1 stock split, the Strasburg Company paid a dividend of $0.75 per new share, which represents a 9% increase over last year's pre-split dividend. What was last year's dividend per share?
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Solution Summary
The solution calculates last year's dividend per share for the Strasburg Company.
Solution Preview
As with a stock dividend, while the total value of your holdings remains the same, the value per share will change according to the split ratio. When a stock split takes place, the market price per share will generally be adjusted by the same ratio. Most stock splits result in ...
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