E8.18 Stock splits & dividends; P8.20 Horizontal model for effect of stock issuance
E 8.18 Stock splits versus stock dividends Assume the you own 600 shares of common stock of a company, that you have been receiving cash dividends of $6 per share per year, and that the company has a 4-for-3 stock split. Required: a. How many shares of common stock will you own after the stock split? b. What new cash d