Suppose the stock of Host Hotels & Resorts in currently trading for $20 per share.
a. If Host issued a 20% stock dividend, what will its new share price be?
b. If Host does a 3:2 stock split, what will its new share price be?
c. If Host does a 1:3 reverse split, what will its new share price be?
a. In a 20% stock dividend 20% more shares will be issued. The price will fall so that the total value of the shares remains the ...
The solution explains the impact on share price of a stock dividend, stock split and a reverse split.