Stock dividends
What are stock dividends and stock splits?
How do stock dividends and splits affect stock prices?
In what situation should a firm pay a stock dividend?
In what situation should a firm split its stock?
Suppose you have 100 common shares of Tillman Industries. The
EPS is $4.00, the DPS is $2.00, and the stock sells for $60 per share.
Now Tillman announces a two-for-one split. Immediately after the
split, how many shares will you have, what will the adjusted EPS
and DPS be, and what would you expect the stock price to be?
